Oil prices will rise between US$40-50 per barrel by the end of the first quarter of this year, Kamel Al-Harami, an oil analyst, expected. He attributed the rise in oil prices that reached US$34.15 pb on Friday to Russia's positive stance seeking to consult with key oil producers across the globe including OPEC member states on this regard.
Russian Minister of Energy announced on Thursday that his country is ready for participating in the coming OPEC meeting due in February, welcoming consultations on the possibility of cutting output by five percent in order to address the decline in oil prices. Understanding between Russia and Saudi Arabia, which is expected to be developed clearly in the coming period, will have a positive impact on oil prices, Al-Harami told KUNA in an interview, expecting that oil prices will rise by the end of first quarter of this year to US$40 pb.
Al-Harami defended the decision taken by Saudi Arabia and all GCC member states for not cutting oil production, saying "the Gulf stance was clear since November, 2014, which called for coordination among OPEC and non-OPEC producers to decrease production so as to stop the continued low prices." He noted that surplus production of all oil producing countries, in particular non-OPEC countries like Russia, led to a decline in oil prices.
Oil markets need coordination between OPEC and non-OPEC producers, mainly Russia, to maintain prices between US$40-50 pb, he said. He stressed the necessity of cooperation among all oil producing countries to address cheap oil, including shale oil, offshore oil and oil from Siberia, which are excavated at high prices.
He affirmed that oil prices will not rise to US$100 pb during the next decade for many causes, mainly a slowdown in global growth and economic problems facing Europe. He urged Russia, as a major oil producer, to work with Saudi Arabia so as to find a possibility to cut production to help all producers obtain satisfactory prices.
Russian Foreign Minister Sergei Lavrov will visit UAE and Oman in the beginning of February to discuss some issues, including the situation of oil markets.