Last year, the cost of a barrel of North Sea oil was around $ 108. Last week, the price dropped to $ 79. The International Energy Agency believes the decline will continue. Oil prices are now at their lowest level in last three years.
The development is explained by greater supply and lower demand as a result of weakened economic activity in China and the EU. Simultaneously, oil production in the United States is at the highest level since 1986.
Citing E24, NTB writes the only thing that can push the price up is a very large cut from OPEC. But nobody expects such a decision from OPEC.
Norwegian government’s budget proposal for 2015 is based on an oil price in 2015 at around $ 95 a barrel. So, the forecast for low oil price may affect the government’s plan.