A Kuwaiti oil analyst said that Kuwaiti oil barrel has lost more than US$90 of its price, dropping below US$20 for the first time since January 2002. Analyst, Mohammad Al-Shatti told KUNA that the pumping of Iranian oil into the market, expected in February 2016, will have a negative effect on the price of oil this year.
He stated that the main reason for the weakness in oil prices was due to the increase in oil supplies which were from outside of OPEC. He added that the moderate winter season in the United States and Europe also contributed to the weakness in global oil demand, noting that the slowdown in Chinese economic also was a factor in the current price of oil.
In 2016, Al-Shatti predicted that global oil demand would increase by 1.25 million barrels per day while the supplies from outside of OPEC will fall for the first time in years by 480,000 barrels per day.
The price, though expected to be low during most of 2016, will gradually increase in the fourth quarter especially for the Brent mix which is expected to hit between US$30-60 per barrel.