Global economic crises may hold back raise in oil prices

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KUWAIT CITY, Oct 3: Oil expert Dr Hani Al-Ghawas has said the global economic crises expected in the next six months may hold back a possible oil price raise in the global market, noting the market price won’t rise to $ 60 as some people are hopeful of.

The much-anticipated difficulty of the European banks and markets in the coming three to six months may increase international demand and yield negative consequences in the market.

Al-Ghawas added the compromise between OPEC and none member countries to stabilize oil production starting from November 2016 will improve prices on the basis of supply and demand, and “no significant change will be attained in the global oil price in the absence of concrete agreement between oil producers and consumption countries”.

For his part, expert in oil and gas strategies Sheikh Fahd Al-Dawood Al-Sabah said the agreement between members of OPEC to stabilize oil production in the coming November will yield positive effects on the global price, indicating psychological factor has a significant impact on prices at the present time and in future.

Al-Dawood noted the agreement signed in Algeria 2008 to stabilize production aimed to reduce overabundance and help improve prices in the market.

Oil expert Khaled Boodai also said the Algeria agreement limits oil production to 700,000 barrels per day as part of plan to make significant impact in the global market; thus, steps should be taken to review and publicize the agreement before voting at the meeting in Vienna coming November.

By Abdullah Othman

Al-Seyassah Staff

This news has been read 5508 times!