Low oil prices will not go on much longer: IEA head Birol


Low oil prices will not go on for a long period of time, according to International Energy Agency director Fatih Birol, who said he would expect oil prices to start rising 2017 under normal economic circumstances.

However, prices of energy resources are among the four factors making the world energy outlook less predictable than ever, Birol said on Jan. 11, speaking at the Turkey launch of the IEA’s world energy outlook. 

The question of whether low energy prices will continue at this level or show an upward trend adds to the unpredictability in the sector, he added.

“There was a 20 percent decrease in 2015 compared to the previous year in oil investment. We expect a fall in 2016 too. There has never been a case in the past whereby investment in oil went down for two consecutive years,” said Birol. 

Low oil prices are good news for oil importers, providing an opportunity to press ahead with subsidy reform, but they might also have some negative consequences, the IEA head said. (by ISTANBUL - HDN)