05:09 GMT26 July 2021
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    Oil prices may go up in 2017 after supply and demand align in the global energy market, a report by the International Energy Agency (IEA) predicted Monday.

    MOSCOW (Sputnik) — The IEA's Medium-Term Oil Market Report 2016 was presented at the 35th annual CERAWeek energy conference in the US city of Houston, which brought together thousands of energy experts to discuss the plunging oil prices.

    "LTO [light tight shale oil] output declines by 0.6 mb/d [millions of barrels a day] this year and by a further 0.2 mb/d in 2017 before a gradual recovery in oil prices, combined with further improvements in operational efficiencies and cost cutting, allows production to resume its upward climb," the report read.

    IEA anticipates global oil exploration and production capital expenditures to fall 17 percent in 2016, which is less that a 24-pecern decrease registered last year.

    Global oil prices plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their below-$30 levels for the first time since 2003, mostly because of a prolonged global oversupply and weak demand.

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    oil prices, International Energy Agency (IEA)
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