Mubasher: Crude oil prices are likely to average over $60 per barrel (pb) in 2019, Oman’s oil minister predicted.
The deal between the Organization of Petroleum Exporting Countries (OPEC) and its allies including Russia and Oman can sustain prices at $60 pb, Mohammed bin Hamad al Rumhi told Bloomberg TV, predicting that crude oil will be traded between $60 and $70 pb.
The range of crude oil prices is also seen to be between $60 and $62 pb, Eni SpA’s CEO said in an interview with Bloomberg.
Prices are expected to increase as the demand for hydrocarbons is still growing, Claudio Descalzi added, noting that output ranges between 1.3-1.4 million barrels per day (bpd).
Crude oil recovered on the back of potential progress in trade talks between the US and China and the oil-exporter bloc’s plans to cut oil output after Brent crude dropped below $50 pb a few weeks ago.
After this recovery, a proposed OPEC extraordinary meeting might not be held, as the UAE’s energy minister noted that “we only do that during emergencies, and there is no emergency”.
Oil producers cut output by 600,000 bpd in December, Saudi Arabia’s energy minister said on Wednesday.
The cartel along with Russia and its allies agreed to reduce 1.2 million bpd of oil production in January in order to support prices.