Published On: Sun, Jul 16th, 2017

Experts say the price of oil will not exceed the ceiling of US$ 70 for more than 5 years

22nd World Petroleum Congress in Istanbul

The World Petroleum Congress was held in Istanbul for the first time this year. Experts who made comments about the current situation in the global oil market said the price of oil wouldn’t exceed the ceiling of US$ 70 for the next 5 years. Experts also commented that the fall in oil prices was due to supply and with the US finding rock oil, stocks had risen excessively much, to a level of 3 billion barrels whereas normal stock levels are 2,6 billion barrels.

On the other hand it is observed that stocks are not growing anymore and there is a balance between supply and demand. For eventual price increases we need to see further drops in stock levels. According to experts, a price increase to the level of US$ 55 could be foreseen provided OPEC abides by agreed limitations. Nevertheless, the ceiling would be around US$ 70 for the next 5 years.

As for Turkey’s position and future in the oil market it is reported that some giant companies in the sector plan to invest 150 million dollars in the Turkish market in the next 5 years and this is to exclude some huge projects. These giants have faith in Turkey and projects such as TANAP which is worth US$ 40 billion only verifies this statement. Turkey is seen as a strategic market and investments are expected to continue here.

Companies involved in the project plan to have the gas flow to Turkey next year, and it is also foreseen that gas growth will be faster than coal and oil in the next 20 years.

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