Expert: Oil prices can reach $60-65 per barrel

By Azernews

By Sara Israfilbayova

Dmitry Marunich, Co-Chair of the Energy Strategies Foundation expected the crude prices to reach $60-65 per barrel by the end of the year.

Marunich told Trend that most of the participants in the negotiations on the limitation of oil production will most likely support the extension of the agreement.

The expert is sure that the deal on oil output cut can be extended in case there is no demarche of any of the largest producers.

The OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.

OPEC agreed to slash the output by 1.2 million barrels per day from January 1, with top exporter Saudi Arabia cutting as much as 486.000 barrels per day.

11 non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558.000 barrels per day starting from January 1, 2017 for six months.

The next OPEC meeting to extend its validity term will take place in May.

In 2014, the crude prices sharply fell following a serious challenge of imbalance and volatility in the global oil market pressured mainly from the supply side. This led to significant investment cuts in the oil industry, which has a direct impact on offsetting the natural depletion of reservoirs and in ensuring security of supply to producers.