Oil to remain in $70-80 per barrel range

Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, has said he is optimistic that international oil prices will remain within the $70-$80 per barrel range over the rest of the year, notwithstanding concerns stemming from geo-political tensions, looming trade wars, and the threat of sanctions by the United States against Iran.

Dr Al Rumhy offered the assessment while taking part in a Ministerial Panel Discussion held during the opening of the World Heavy Oil Congress and Exhibition at the Oman Convention and Exhibition Centre here yesterday. He was joined on the panel by Sheikh Mohammed bin Khalifa al Khalifa, Minister of Oil — Kingdom of Bahrain.

“I think oil prices will stay between $70 and 80 per barrel,” said the Minister of Oil and Gas.

“I don’t think the 80s level will be touched this year, unless there is a major problem in the world.”

He stressed in this regard the need for producing countries to ensure stability in supply and demand aimed at achieving a price range that is “fair” to producers and consumers alike.

But he acknowledged “threats” on both the supply and demand side of the equation that could potentially impact international oil prices. Any uptick in prices, speculated in some “scenarios” to rise to $90 per barrel, is more of a “threat” to the market, than any “opportunity” for producers to make a windfall, Dr Al Rumhy noted.