Kuwaiti expert predicts global oil prices at $45-55 per barrel

Kuwait oil prices rise 54 cents per barrel

KUWAIT CITY, June 24, (KUNA): International oil prices are forecast to remain in the vicinity of $45 and 55 until the market regains stability and equilibrium, a Kuwaiti oil expert believes.

Market balance can be restored by means of increasing more global oil stock withdrawals in a way that could send oil prices into future recovery, Mohammad AlShatti said to KUNA.

Oil producers’ strategy aiming at allowing market dynamics to bring the world oil market back to earlier balance has contributed to curtailing shale oil production, he said.

However, this plan has failed to notch up the ultimate goal of rebalancing the oil market mainly due to the reluctance of OPEC and nonOPEC producers to cut oil output, the oil expert regretted.

The recent agreement by OPEC and non-OPEC countries to cut production as part of a fresh blueprint to restore market equilibrium has actually led to the recovery of oil prices, Al-Shatti added.

Rebalance

But, slowness in market rebalance since the oil output cut deal was put in place is primarily attributed to a hike in OPEC exports to the US market, sending oil markets into a state of concern, he pointed out.

During a meeting last month, OPEC officials agreed to protract the oil output accord, pushing the deadline to March of 2018.

In November, OPEC along with 10 non-OPEC members, including Russia, struck a deal to limit oil output by 1.8 million bpd in an effort to restore stability in the global oil market.

The price of Kuwaiti oil barrel rose 54 cents to reach $41.77 per barrel on Friday, compared with $41.23 pb on Thursday, said Kuwait Petroleum Corporation (KPC) on Saturday. Oil prices in international markets went up yesterday affected by the drop in the US dollar’s exchange rate.

Brent crude oil rose 32 cents reaching $45.54 per barrel upon settlement and West Texas Crude went up 27 cents to reach $43.01 pb.

The price of Kuwaiti oil barrel dropped 66 cents to reach $41.23 per barrel on Thursday, compared to $41.89 pb on Wednesday, said Kuwait Petroleum Corporation (KPC) on Friday.

Oil prices rose in international markets yesterday as the Joint OPEC and Non-OPEC Ministerial Monitoring Committee announced that the rate for limiting oil production in May was 106 percent.

Meanwhile, Brent crude oil went up 40 cents to reach $45.22 pb upon settlement and US crude oil rose 21 cents reaching $42.74 pb.