In an interview to Russian news agency Tass, H E Rumhi stated that oil producers want to be much more rational and reside in the existing atmosphere with a cost of about US$60 per barrel. “Every producer requirements $80 per barrel compared to US$60, but is it affordable? Probably not, not in the existing situations.
“We need to move with the current economic environment. I would enjoy seeing oil grow from US$60 to US$80, but it’s highly unlikely,” Tass quoted H E Rumhi as saying.
H E Rumhi was in Abu Dhabi on Monday to attend an power conference.
Tass reported that as per the forecast by international rating agency Fitch, the cost of oil in 2019 will be US$65 per barrel. For several Middle Eastern OPEC members – in certain, the UAE and Kuwait – this cost is really comfy, analysts stated, with the exception of Saudi Arabia, for which a deficit-free of charge price range begins at US$80 per barrel.
According to economists Oman requirements prices at US$85 per barrel to balance the price range. Oman has projected a deficit of about RO2.8bn primarily based on assumptions that prices typical about US$58 per barrel.
According to international news agencies, the OPEC+ Russia and other individuals output reduction deal remains in impact till the finish of March 2020 and is developed to stabilise oil prices. Saudi Arabia is the biggest oil producer in OPEC, and is the leader of the OPEC+ agreement along with Russia.
In total, the nations participating in the agreement must decrease production by 1.2mn barrels per day against the level of October 2018. The principal reduction quotas fall on the biggest parties to the agreement – Russia and Saudi Arabia (228,000 and 322,000 barrels per day, respectively).
Information Source: Muscat Daily