Oil Price Fall 2008 vs 2015

BEROE ninftle 2008 2015/16 Dutlook for next 2 years LOWEST LEVELS WITNESSED $30/bbl $27.67/bbl $20/bbl SIL MAGNITUDE OF FALL/DURATION Expected range of $15 - $50 in next 2 years. $110 in 7 months $70 in 24 months NATURE OF DECLINE Sharp decline in prices Steady decline in prices Gradual decrease towards lower levels PRICE FALL 2008 vs 2015 THIS TIME IS DIFFERENT FOLLOW-UP TREND FOR 2 YEARS Sharp positive reversal Downtrend persisting Downtrend expected to extend ECONOMIC SCENARIO Led by supply surplus amidst slowing global economy Demand growth expected to slowly improve Led by financial crisis OIL INDUSTRY IMPACT Increased market competition Sustained supplies to maintain market share Industry consolidation expected ОРЕС АСTIONS OPEC may cut production in their next meet Increased levels to maintain Cut production levels market share OTHER PARTICIPANTS With the lifting of U.S. crude export ban as well as Iran's re-entry onto the world stage, oil markets might witness more supply U.S. at record production levels 2$