(ShareCast News) - Oil prices will gradually rise to $80 a barrel in 2020, as supply growth outside the Organization of Petroleum Exporting Countries (OPEC) weakens.
Bloomberg reported that internal OPEC research showed that average selling price of crude oil will increase by around $5 per year to 2020.
That's from an average price of $55 this year.
But it's a slower recovery than several nations said they need, with Iran and Venezuela saying they would like to see a price of at least $70 this month.
The price of crude has been slashed in half over the past year, and Goldman Sachs on Friday cut its 2016 Brent oil price forecast to $49.5 a barrel from $62.
It warned there is a risk prices could fall to as low as $20.
The internal OPEC report also said production from nations outside the group will be 58.2m barrels a day in 2017, one million lower than previously forecast
The impact is "most apparent on tight oil, which is more price reactive than other liquids sources," according to the report.
"Supply reductions in US and Canada from 2014 to 2016 are clearly revealed."
