Oil to remain in $70 - 80/b range this year: Rumhy
Oman chose to ‘stay the course’ in its upstream investment strategy from the outset of oil price downturn in 2014, says minister
Dr Mohammed bin Hamad al Rumhy, Minister of Oil & 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 & Exhibition at the Oman Convention & Exhibition Centre here yesterday. He was joined on the panel by Shaikh Mohammed bin Khalifa al Khalifa, Minister of Oil — Kingdom of Bahrain.
“I think oil prices will stay between 70 and 80 dollars per barrel,” said the Minister of Oil & 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.
“We are trying to sustain prices in the 70-dollars range, but there are dangers...,” the minister said.
One such peril, which became evident in the latest deliberations of the Opec — non-opec grouping of countries that have pledged to curtail production, is linked to potential supply-side challenges being faced by some producers.