OIL

Kuwait expects oil prices to reach $50 per barrel by year end

Kuwait’s Acting Oil Minister Anas Khalid Al-Saleh expects oil prices to stand at $50 per barrel at the end of 2016.

MOSCOW (Sputnik) – Oil prices will stand at $50 per barrel at the end of 2016, Kuwait’s Acting Oil Minister Anas Khalid Al-Saleh expects.

“Now we see better prices in the market, demand has been increasing — part of it is outages of production in Canada, Libya, Nigeria and the shale oil,” Saleh, who is also Kuwait’s Deputy Prime Minister and Minister of Finance, said in a Wednesday interview with Bloomberg.

Oil prices have plunged more than 60 percent from their peak of over $110 a barrel in June 2014 because of global oil production outpacing global demand.

In April, the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC oil producers failed to agree on freezing oil output at January levels to shore up prices after Saudi Arabia backed out of the deal, insisting that Iran, which has been boosting oil production after years of international sanctions, should be part of any production cuts.

US Energy Information Administration (EIA) administrator Adam Sieminski told Sputnik earlier this month that oil prices would reach some $50 by the end of the current year.

By Sputnik