OPEC: current prices of oil no longer sustainable

News ID: 3033905 -
LONDON, Jan. 26 (MNA) – Executives from the Organization of Petroleum Exporting Countries (OPEC) considered Monday that the international prices of oil are no longer sustainable, and will go back to their normal prices during 2016.

"We are already seeing, that the foundations of the oil supply and demand nowadays, will start to get a correction, in 2016," said OPEC secretary general Abdullah al-Badri.

"All the great oil producers should sit down on a table and find a common solution. The market forces, together with cooperation among oil producers, will possibly give back stability to the markets," he said.

In opinion of the Minister of Energy of Qatar, Mohammed al-Sada, it was foreseeable 'another cycle of regression of the prices of the crude oil."

"But we will recover. The market definitely will achieve a new balance because the oil prices nowadays by no means, are sustainable', he stated.

Both experts thought that there are reasons to be optimistic on having estimated the possible increase of the prices of the product, taking in mind the rise of aggregate demand of crude oil in 2016 and a contraction of the provisions of countries out of the cartel.

According to al-Badri, 'it is vital that the market tackles the problem of the surplus fund. Since it is possible to see in previous cycles, once this surplus begins to diminish, then the prices begin to rise', he insisted.

Since the middle of 2014 until the date, the sale price of the crude oil diminished in more than 70 percent, which produced millionaire direct affectations to exporting nations and companies of the energy sector.

In the forum of London, al-Badri admitted that up to a point, OPEC has contributed to the rise of the production, 'but most of this volume come from other countries', he said.

From 2008 to 2014 the external production increased in 6,29 million barrels per day, and the pumping of the members of the organization decreased in 0,31 barrels per day, he illustrated.

The depressed prices, in the environment of 30 dollars, compromise the profitability of the industry, made sure the participants in the meeting.

'At the level of prices current, not the whole investment necessary for the future is viable. The extreme prices, already be too high or too low, they are not of benefit to the interests either of the producers or of the consumers', the OPEC Secretary-General estimated.

 

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