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Oil prices to rise to $60 as OPEC likely to extend cuts: Ex-Saudi adviser

Saudi energy ministry official said in a speech in Washington on Monday

Reuters  |  Singapore 

OPEC says winning battle to end oil glut OPEC-MEETING The OPEC logo is pictured at its headquarters in Vienna The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna. Photo: Reuters
The OPEC logo is pictured at its headquarters in Vienna

prices may rise to $60 a barrel by the end of this year or by early 2018 as and non-producers are expected to extend supply cuts beyond March, while inventories continue to decline, a former official said in a speech on Monday.

** "With the current arrangement and commitment of major producers, and their willingness to adjust and extend the agreement, I believe as commercial stocks continue to contract, prices will gradually increase. We even might hit $60 per barrel before the end of this year or the beginning of next year," said, according to a transcript of the speech received by Reuters.

** Global commercial stocks are being drawn down gradually, more slowly than initially hoped, and demand is growing by more than 1.5 million barrels per day this year, with robust growth forecast for next year, Muhanna said.

** "Some market analysts have argued that once the agreement ends, the producers will flood the market with new supplies but this view is shortsighted. After all, it is in the best interest of producers to create a soft landing and not disrupt the market's newfound balance," he said.

** Muhanna, who spoke at an industry event in Washington, is now an independent consultant after recently retiring as an adviser to the

First Published: Tue, September 26 2017. 11:27 IST