Efficiency improvements from the world’s largest oil-producing firms and countries, alongside the rise of U.S.
shale, will see prices slide back to near $50 a barrel, according to research at investment bank J.P. Morgan
Christian Malek, the head of EMEA oil and gas equity research at J.P. Morgan, said that the “breakeven” price — where they just about manage to cover their costs — for OPEC
nations and major energy companies would drift back towards $50 a barrel by the end of next year. He explained this current price was in the mid-$60 a barrel price range, including for nations like Saudi Arabia
However, the bank predicted a “breakeven duel” between the 14-member OPEC organization and big oil companies would soon “drive a vicious cycle for oil prices, with medium-term pricing likely to gravitate to the low-$50s.”
“Everything is gravitating towards $50 a barrel,” he told CNBC Thursday. […]