Tuesday, 26 May 2020

Economist: OPEC’s Success In Reducing Production Will Raise Oil Prices To $ 45 A Barrel

Baghdad, Economist Qusai Safwan said that the success of the OPEC meeting and Russia scheduled for next Thursday will push oil prices up to $ 45, which is a reasonable price in light of the global recession in the current period.

Qusai said in a statement to the National Iraqi News Agency (NINA): “In light of the continued impact of the Coronavirus on the global economy and with the continued loss of control over the volume of global production, oil prices have declined dramatically, which led to direct damage to American shale oil companies and the economies of most of the producing countries. This is what pushed the global oil markets to renew the agreement between OPEC, Russia and other non-OPEC producers to rebalance the oil supply markets. “

He pointed out that “the agreement will be to reduce the volume of production by about 15 million barrels until the end of the year, and if this happens, prices will push to what is up to $ 45 a barrel, which is a reasonable price in light of the global recession in the current period.”

Saudi Arabia and Russia were scheduled to meet Monday to discuss production cuts, but the meeting was postponed to April 9 after they accused each other of responsibility for the collapse of the March talks.

Source: National Iraqi News Agency

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