Kuwait: the agreement of the countries-manufacturers of oil can lead to a surge in prices by $20-30

Kuwait: the agreement of the countries-manufacturers of oil can lead to a surge in prices by $20-30


KUWAIT city, March 8. /Corr. Vasily Vavilin/. Oil prices can jump to $20-30, if the producing countries will be able to meet and come to a final agreement. However, according to the national representative of Kuwait to OPEC Mohammad al – Shatti, at the present time there are several scenarios, including negative.

“It all depends on what the players say to the market,” said al-Shatti in an interview. The market, he said, reacted positively to the meeting of Ministers of oil of Saudi Arabia, Qatar, Venezuela, the OPEC and Minister of energy of Russia Alexander Novak. “The prices soared to $10, even more. Before the next meeting, the market is satisfied, and at the end of the next meeting will be a reaction,” said the official. According to al-Shatti, if the next talks will be held and will be made a certain decision, players in the oil market will take some time to understand whether it impacts on the process of stabilization or not. “The price could rise by another $20-30”, – said the expert, adding that this optimistic scenario. Otherwise, the price per barrel may persist until the next step. “If the meeting does not take place, then I think prices will not fall,” he concluded.

In General, al-Shatti believes that major exporting countries ‘ serious intentions, which proves the meeting in Doha on 16 February. In this regard, it does not exclude a variant in which “producers will be able to say that they trust each other, comply with the terms of the agreement and can go to the reduction of oil production”.

In mid-February in the Qatari capital Doha, Ministers of oil of Saudi Arabia, Qatar, Venezuela, the OPEC and Russian energy Minister Alexander Novak held talks on improving the price situation on the oil market. The parties expressed their willingness to save, on average, in 2016 oil production at the level of January of the current year, if the other producing countries will join this initiative.

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Oil prices over 40 years

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