Column: Oil prices likely to average less than $60 over next cycle - Kemp - Reuters

Column: Oil prices likely to average less than $60 over next cycle - Kemp - Reuters:

Oil prices are likely to average less than $60 per barrel across the next cycle to ensure production, especially from the shale sector, remains in line with the slow increase in consumption.

On Monday, BP announced its long-term investment appraisal price had been cut to an average of just $55 per barrel for Brent in real terms between 2021 and 2050.

Explaining its decision, the company cited the lingering impact of the coronavirus epidemic on oil consumption and the potential for an accelerated transition to a lower-carbon economy and energy system.

“These lower long-term price assumptions are considered by BP to be broadly in line with a range of transition paths consistent with the Paris climate goals,” the company said in a press release.