To achieve equilibrium in the energy market the price of oil should be above $ 50 per barrel. This was stated by Minister of energy of Saudi Arabia Khalid al-Faleh in an interview with German newspaper Handelsblatt on Tuesday, July 12.
According to the official, the current price for hydrocarbons will be the reason that investment in the sector will be reduced. The consequence of lack of money will be the inability of oil companies to meet growing demand for fuel.
Al-Faleh also named several factors that exert pressure on the price of oil. In addition to falling investment, he also highlighted the unstable situation in some exporting countries, such as Nigeria. The Minister noted that “oil prices are going in the right direction.”
July 12 at 12:45 GMT Brent on London’s ICE futures exchange was trading around the level 47,31 USD per barrel. It has risen by 2.1 per cent compared with the close of the previous session.
A day earlier it was reported that OPEC countries, including Saudi Arabia increased its oil production to its highest level since 2008. The cartel produces of 32.73 million barrels a day.
On 18 June the Minister of oil of Venezuela, Eulochio del Pino warned that in the winter of 2017 fuel prices could collapse to $ 20 a barrel, if you do not take measures to limit production.
