Although Royal Dutch Shell still expects the downturn in the oil industry will be protracted, a significant reduction in investment and a decrease in production in the U.S. portend higher prices in the future, said van Bearden at a press conference in London.
“In may and June we noticed the first signs of a decline in production [of oil on the world market],” he said. According to the head Shell, this can lead to an increase in oil prices, reports Bloomberg.
This restoration of balance between supply and demand on the market “will take some time,” said van Bearden. Once this happens, the deciding factors would remain in the market position of Saudi Arabia and how will United the OPEC countries in oil production.
In this case still remains unknown, how soon will recover, oil prices and at what level they will be fixed, said head of the Shell.
Since June 2014 oil prices fell by more than 50%, says Bloomberg. As of 14:55 Moscow time on Tuesday November futures on Brent oil was worth on the ICE Futures exchange $49,47 per barrel.