“Oil can reach $60 per barrel” - Khalid al-Falih

10.10.2016

Oil prices rose during Monday session in the US, after the Saudi energy minister optimistically stated that the agreement on production cut can be achieved in November.

Speaking at the World Energy Congress in Istanbul, Khalid al-Falih said that OPEC's approach should be balanced and responsible and that he is still confident of a significant role of OPEC in the market.

He also said that OPEC members do not want to shock with oil price changes.

On the London's ICE Futures Exchange, Brent crude oil for December delivery increased by 60 cents, or 1.15%, to $ 52.53 per barrel.

Earlier, the contract price fell by as much as 1.2% to a session low of $ 51.30, after the Russian Energy Minister questioned the agreement to limit production.

In addition, it is reported that Iraq and Iran won't take part in the WEC, creating another obstacle for a planned reduction in production.

During the negotiations in Algeria at the end of last month, the Organization of Petroleum Exporting Countries has reached an agreement on the limitation of production in the range of 32.5 million to 33.0 million barrels a day, reducing the volume of production by 0.7% -2.2 % from the current 33.2 million barrels.

However, market analysts are still skeptical about the agreement, in particular about the possibility of its realization.

On the New York Mercantile Exchange, WTI crude oil for November delivery rose 53 cents, or 1.05%, to $50.34 per barrel, after falling as much as 1.3% to an intraday low of $ 49.15.

Market participants continue to focus on US drilling activity amid signs of its ongoing recovery.

The price of oil by the end of the year could reach $ 60 per barrel, according to Minister of Energy, Industry and Mineral Resources of Saudi Arabia – Khalid al-Falih. The opinion was expressed at the 23th World Energy Congress.

"We cannot say with absolute certainty, but perhaps it would be $60 per barrel by the end of the year”, - he said.

 

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