Ex-Saudi Adviser: Oil prices to rise to $60 as OPEC likely to extend cuts - RTRS

A former Saudi Energy Ministerial official, Ibrahim al-Muhanna, said in a speech Washington late-Monday, oil prices may rise to $60 a barrel by the end of this year or by early 2018 as OPEC and non-OPEC producers are expected to extend supply cuts beyond March, Reuters reported.

Key Quotes:

“With the current arrangement and commitment of major producers, and their willingness to adjust and extend the agreement, I believe as commercial oil stocks continue to contract, oil prices will gradually increase. We even might hit $60 per barrel before the end of this year or the beginning of next year.”

“Some market analysts have argued that once the agreement ends, the producers will flood the market with new supplies but this view is shortsighted. After all, it is in the best interest of producers to create a soft landing and not disrupt the market’s newfound balance.”