The price for a barrel of crude oil in the global market is expected to remain at USD 70 until the end of the year, according to an analyst. Stability in the oil market is largely a result of OPEC members’ commitment to keep oil output in check, Dr. Khaled Boodai told KUNA in an interview on Monday, pointing out that last year’s sharp decline in crude prices was caused by oil oversupply at world markets.
Stability in oil prices has helped resuscitate the global oil market, as the price of a barrel of crude has risen to USD 68 after OPEC scurried to limit production in a deal struck last December. He cited other factors behind the newfound stability in the prices of oil, including a greater sense of optimism over global economic conditions, which led world oil demand to grow to 1.5 million barrels per day (bpd). The analyst did not rule out the price of a barrel of crude to possibly reach US$70 towards the end of the year, despite a boom in shale oil production, which has skyrocketed to eight million bpd. US stocks of crude oil and economic sanctions imposed on Iran are less likely to have much of an impact on oil prices, Boodai explained.
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