Fidelity bank banner Bayelsa State banner
OPEC foresees oil price rebound

By News Express on 16/12/2015

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,816


Global crude oil prices at seven-year lows will not continue and could swing upwards in as little as a year, OPEC Secretary-General Abdullah al-Badri said on Tuesday, as the low-price cycle leads to cuts in output from some producers.

Oil prices have fallen by about two-thirds since mid-2014, with Brent crude on Monday flirting with its lowest level since 2004 at just above $36 a barrel.

Most analysts, however, don't expect oil prices to regain the $100 mark until 2017 or later, arguing that producers will continue to pump out more crude than is being consumed.

“I’ve been in the oil business all my life. I saw six cycles – I saw very high price, I saw low price, and this is one of them. This will not continue,” Badri said at the first OPEC-India Energy dialogue in New Delhi.

“In a few months or a year or so this will change,” he said.

He said OPEC does not have a target price but was looking for a fair value that meant “member countries can have a decent income and also where we can invest to (provide) more supply to the consumers.”

The world is already producing up to 2 million bpd more oil than it consumes, with OPEC pumping at near-record levels in an attempt to drive higher-cost producers such as U.S. shale oil drillers out of the market. And its strategy appears to some extent to be working.

Non-OPEC annual supply growth shrank to below 300,000 bpd in November from 2.2 million bpd at the start of the year, according to the International Energy Agency (IEA).

Oil output could decline in the next two to three years as low prices have resulted in a planned $130 billion in investment being cut this year, Badri said, adding that non-OPEC supplies are set to decline by about 400,000 bpd next year.

The Organization of the Petroleum Exporting Countries (OPEC) in its Dec. 4 meeting failed to agree on an output ceiling, raising the stakes in a battle for market share that began at the end of 2014 against the wishes of some members with fragile economies, such as Venezuela, Nigeria and Ecuador.

Another big supplier Iran has been clear that it aims to raise its output by at least 1 million barrels per day (bpd) – about one percent of global supply – after sanctions against it are lifted next year.

OPEC is determined to keep pumping oil vigorously despite the financial strain even on the policy’s chief architect, Saudi Arabia, alarming weaker members of the cartel who fear prices may slump towards $20 a barrel.

But Badri said even if the United States government begins to allow more exports of crude, prices will not be weakened further and OPEC can continue to produce at current rates. (Reuters)

 

Source News Express

Posted 16/12/2015 04:52:10 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
FG slams fresh N7.5bn fraud charge on ex-governor...

Censors Board declares popular Mexican soaps aired on...

Soldiers, Police clash with Road Safety officers in...

Ruthless Croatia bundle Cameroon out of Brazil 2014...

Ojukwu would have joined APC if he were...

Boko Haram kills 4 in Borno IDP Camp...

Anti-terrorism troops ambushed in Zamfara

N30 trillion revenue scam: Senate to hand over...

Kaduna Electric complies with NERC directive on operational...

Bayelsa withholds salaries of 4,204 civil servants

Biafra: FG taking due advantage of our disunity...

Breaking News: Jonathan suspends CBN Governor Sanusi, appoints...

 

Latest News Zinox Boss to FG: Use technology to eradicate corporate debtors, boost economy •Explains how it can be done Hundreds of Nigerian troops still missing after Boko Haram attack on base Robbers write Lagos communities, says ‘expect us soon’ Imo dep gov’s impeachment: God forgive us for making Okorocha gov — Umeh How Ekiti governorship election was won and lost Innoson heads to Supreme Court as Appeal Court rules GTB appeal can be heard Abeokuta Flood: Amosun warns against indiscriminate building of houses, dumping of refuse Alleged forgery of NYSC certificate: HEDA petitions IGP, seeks investigation of Finance Minister APC: Taking over Delta State in 2019 is not negotiable Adamawa Govt. orders removal of Dankwambo's presidential campaign billboard Reps’ panel to meet Obasanjo, Jonathan, Buhari on Abacha loot Saraki urges U.S. to take its rightful place in trade, investment in Nigeria

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (361,099 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (357,866 views) Shameless Genevieve Nnaji exposes breasts in public (286,150 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (234,793 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (213,978 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (212,228 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (186,004 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (167,997 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (156,055 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (152,325 views) Lagos plane crash: Journalist releases victims’ names (147,246 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (138,543 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (52) Business & Economy (3,341) Business Verdict (45) Columnists (886) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (516) Features (614) Global Business Monitor (284) International (2,129) Interview (157) Live Commentary (28) Love Matters (127) News (37,156) Opinion (1,021) Pidgin (10) Politics (5,572) Religion (783) Sports (1,609) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

FRANCE vs CROATIA 4-2 Highlights & Goals 2018

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement