IEA Sees Oil Prices at $80 by 2020

The International Energy Agency (IEA) expects oil prices to increase to $80 per barrel by 2020, adding in its yearly report that there are clear signs that an energy transition is underway. 

“A period of low oil prices is the moment to reinforce our capacity to deal with future energy security threats” IEA Executive Director Fatih Birol commented in a statement released on Tuesday.

European authorities welcomed the evidence reported in the World Energy Outlook 2015.

“The good news is that the report shows the world is shifting towards clean energy” Miguel Arias Cañete, European Commissioner for climate action and energy, commented. 

As said in the document, the IEA also provided a forecast of oil prices in the next 5 years. 

‘In the central scenario of WEO-2015, a tightening oil balance leads to a price around $80 per barrel by 2020’ reads the press release.

Meanwhile, Total’s CEO Patrick Pouyanne said that oil majors can reap the benefits of the current market conditions. 

“My advice is to be patient with M&A,” Pouyanne said as reported by Reuters, explaining that values of assets have to yet fallen far enough.