International oil prices are likely to tick up into the “high-sixties” further into 2018, according to Dr Mohammed bin Hamad al Rumhy, (pictured) Minister of Oil and Gas. Speaking at the opening of the 2018 SPE EOR Conference — part of the OGWA 2018 forum — he also noted that Opec and non-Opec producers, which helped shore up prices via a landmark production reduction pact agreed in December 2016, are expected to enter into a longer-term “dialogue” to address volatility in the future.
“I am optimistic,” Dr Al Rumhy remarked, when asked about the outlook for more balanced global oil markets based on the Opec/non-Opec production curbs. He further added, “But I don’t think the price will go as high as 70s or 80s soon, but traditionally in the first quarter of every year, demand is slowest, and as a result prices in the 60s are sustained in the first quarter. So, from now on, I think there is an opportunity for the price to creep up into the high 60s for the rest of the year.”
Besides, producers that are party to the global production cuts are in a “mood to stay the course”, the minister said.
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