Date: 09:37 04/27/2017
Warned the Abu Dhabi Investment Authority in the research head of Christoph Rohl, Thursday, from the low price of crude oil to below $ 40 a barrel, the Organization of Petroleum Exporting Countries «OPEC» has not expanded and producers allied with the collective Tkhvadhathm production beyond June.
According to Rohl's remarks reported by the agency «Bloomberg» led cuts that lasted six months, which entered into force in January, to put an end to the prices, but increase the supply of US shale oil as well as high US stocks continuing oil discoveries did not help the high price of a barrel crude oil above $ 50.
He Rohl, that if «OPEC» and other oil countries did not extend the agreement to continue the reductions, this price will fall $ 50, and there is nothing to stop below $ 40 a barrel. »
Said Rohl, that the producing countries will not come close to getting rid of the current oil stocks unless the expansion of its production to reduce the extent of the second half of the year, adding that oil consumers may need two and a half year to exhaust the current surplus in global stocks.
He explained that one of the results of the cuts for «OPEC» is the acquisition of Iraq and Iran shares in the world market at the expense of the largest member of the group in Saudi Arabia.
«OPEC» agreed and other key producers including Russia last December to pump less than the amount of oil to try to rein in excess supply, which put pressure on prices. The organization intends to decide at a meeting next month whether it will cut its output to the second half of this year. Finished / 25