Canada lowers its forecast for 2020 oil prices

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The Canadian National Energy Board has lowered its forecast for oil price recovery. The analysts suppose that the reasons will be new challenging environmental policies and falling costs of energy production.

According to the Wednesday report, by 2020 a barrel of crude oil will raise to $68. This is $12 lower than the previous prediction published by the agency earlier. The 2040 forecast has also been lowered since January by $17 to $73 per barrel.

“A lot of it is the ability of oil production to be sustained at lower prices,” Shelley Milutinovic, chief economist of the Canadian National Energy Board told The Star. “There’s an expectation that somewhere between 40 and 60 dollars a barrel, you can get a lot of oil production around the world.”

At the same time the agency raised expectations for renewable energy sources by 2040 from the 8% increase in January to 12% in the newest report.

“Things are changing very, very quickly, particularly with respect to climate policy,” Milutinovic said. “It’s a very fast-moving target.”