Mubasher: Oil prices are projected to reach $44 per barrel in 2016, according to a report by Qatar National Bank (QNB).
QNB said Sunday its forecast is based on the assumptions of demand growth, lower US supplies, high Iranian exports and production stability from the rest of Organization of the Petroleum Exporting Countries (OPEC).
A more bearish scenario would suggest a strong rise in supply, which drives oil prices to $36 per barrel as demand growth will fall to about 0.9 million barrels per day, equivalent to that of 2014. The bank also expected steady US shale production.
On the other hand, an optimistic scenario would be seen through a sharp fall in supply versus a strong rise in demand which will lead prices to average at $50 a barrel.
The latter scenario assumed that the strong growth rate in demand that took place in 2015, 1.6 million bpd, will continue in 2016, and the US supply will shrink to 0.6 million bpd.
