'tough' 2016

The Pak Banker - - MARKETS/SPORTS -

lift­ing of in­ter­na­tional sanc­tions.

"The im­pact of the Ira­nian crude de­pends on when it would come to the mar­ket, what are the vol­umes and grades and where will it be mar­keted... But any ad­di­tional sup­plies from cur­rent lev­els will put pres­sure on prices."

There has been more than one re­quest in the past six months for an Opec emer­gency meet­ing to ad­dress slid­ing oil prices, Al Fuzaia told re­porters on the side­lines of the con­fer­ence. "But if there was no real and clear co­op­er­a­tion to re­duce the sup­plies from all sides, whether from out­side the Opec and heavy­weight pro­duc­ers, there will be no [need] for a meet­ing," she said. "On the con­trary, if there was a meet­ing with­out a con­crete out­come to co­op­er­ate, it would have a very bad im­pact on the oil mar­ket."

Asked about com­ments from a Lukoil of­fi­cial who said Rus­sia needed to work with the Opec to re­duce sup­plies, she said: "The Opec wel­comes any co­op­er­a­tion from coun­tries out­side the Opec to work with it to sta­bilise the mar­ket and reach suit­able prices for all pro­duc­ers... I read th­ese com­ments as you did," she said. Al Fuzaia said ear­lier that the Opec can­not cut oil out­put alone when pro­duc­ers from out­side the group are rais­ing sup­plies. The two sides should work to­gether to sta­bilise the oil mar­ket, she said.

Mean­while, the Opec's strat­egy of al­low­ing low oil prices alone to sta­bilise the mar­ket with­out cut­ting sup­ply is work­ing, Kuwait's act­ing oil min­is­ter Anas Al Saleh said. Al Saleh said that he ex­pected the price of oil for the 2016/17 bud­get to be set at around $25 a bar­rel.

Some 90 per cent of the Opec coun­try's state rev­enues come from oil. Kuwaiti oil prices dropped to around $19.50 a bar­rel on Jan­uary 21, but have since re­bounded and stood around $22.60 on Mon­day.

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