EMEA News
OPEC Predicts Oil Prices Have Hit Bottom
The Organization of the Petroleum Exporting Countries (OPEC) Secretary-General Abdulla al-Badri says he thinks oil prices may have finally reached their bottom and could rise higher soon, Reuters reports.
"Now the prices are around $45-$50 and I think maybe they reached the bottom and will see some rebound very soon," he said.
Al-Badri has also called for continued investment into oil production, otherwise it could lay the foundation for a massive price spike in three to four years time.
"Suppose we cut production, and then we'll have spare capacity," he said.
"Producers, when they have excess capacity, they will not invest.
"If they do not invest there will be no more supply, if there is no more supply there will be a shortage in the market after three-four years and the price will go up and we'll see a repetition of 2008."
He predicted that such a sequence of events could cause prices to balloon up to $200 per barrel, echoing comments earlier this month by Italy's ENI S.p.A..
Al-Badri also maintained that OPEC and non-OPEC members wouldn't be discussing any cuts to production in the foreseeable future.
"It will take another four-five months and we will not see some concrete efforts before the end of the first half of the year due to the reason that we will see how the market behaves at the end of the first half of 2015," he said.
Earlier this week Ship & Bunker reported that both El-Badri, and Saudi Aramco CEO Khalid A Al-Falih said the current oil price is logical.
