Reuters reported that oil prices could reach USD 150 per barrel in the near term if investment in the Middle East and North Africa oil producing region falls significantly.

The International Energy Agency said that if between 2011 and 2015 investment in the Mena region runs one-third lower than the USD 100 billion per year required, consumers could face a near term rise in the oil price to USD 150 per barrel.

The IEA, adviser on energy policy to major oil consuming countries, said world oil demand would rise steadily over the next 2 decades to reach around 99 million barrels per day by 2035.

It said short term pressures on oil prices were easing as global economic growth slowed and Libyan oil began to return to the market after months of civil war but in the longer term prices were likely to rise.

The IEA raised its assumptions for the price of oil in 2035 to USD 210 per barrel from USD 204 a year ago. Production of conventional oil will fall gradually to around 68 million barrels per day by 2035, 0.5 million barrels per day lower than its forecast last year.

(Sourced from Reuters)