Kuwait crude price to remain in the range of USD 65-75 pb until the end of 2018, an oil expert said Sunday.
In an interview with KUNA, oil expert Dr. Abdul-Samie’ Behbehani projected the Brent crude prices at a range between USD 70-80 pb, pointing out that there are different factors affecting the prices until 2020.
He noted that these factors include the ‘trade war’ between China and the United States dor the most part; a global economic face-off that would also include the European Union, Canada and Latin America, in addition to conventional wars and conflicts in the regions with producing countries.
Another major factor is the US sanctions on Iran and the boycott of its oil, along with the slowdown of shale oil production in the US and the recent OPEC decision to increase oil supplies.
“These geopolitical factors have increased ambiguity over the future of global oil supplies,” Behbehani pointed out.
He noted that OPEC expected global oil demand to grow by 1.65 million barrels per day in 2017 to reach 97.2 million, adding that oil demand is also expected to grow this year by 1.65 million barrels per day to reach 98.85.
On OPEC’s decision to cooperate with top producers from outside, the Kuwaiti expert explained that the first challenge facing the group is the huge surplus in commercial stocks after the decline in prices.
The collapse in oil prices between 2014 and 2017 was driven by a growing supply glut, and the refusal of some OPEC countries to reduce production.
Source: Kuwait News Agency