DALLAS–OPEC now sees oil prices rising more slowly over the next few years than it had expected, as the oversupply of crude takes longer to work off.
The Organization of the Petroleum Exporting Countries said it expects crude will rise US$5 a year to US$60 per barrel by 2020. A year ago, OPEC forecast that oil would hit US$80 by 2020.
OPEC cited many factors that could limit energy demand, from slower growth in China to higher household debt.
The cartel expects global economic growth of 3.4 per cent over six years, down from a 3.6 per cent prediction a year ago.
At the same time, OPEC said, the oil industry was surprised by the ability of producers in North America to keep pumping even as prices fell, maintaining crude supplies high.
AP