Kuwaiti oil barrel to drop to USD 27 in Feb- Analyst
Date
12/29/2015 7:08:48 AM
(MENAFN- Kuwait News Agency (KUNA)) By Osama Jalal
KUWAIT Dec 29 (KUNA) -- A Kuwaiti oil analyst has forecasted the price of Kuwaiti oil barrel would drop to USD 27 per barrel next February affected by the pumping of Iranian oil into the markets and the decision to lift the ban on exports of US crude oil.
International oil experts all agreed that such factors mainly pumping about 500000 Iranian oil barrels daily will lead to a drop in GCC's oil prices analyst Mohammad Al-Shatti told KUNA on Tuesday.
Brent crude oil's price is expected to drop to USD 32 pb as the amount of offered oil in markets will prominently increase Al-Shatti added.
Meanwhile the analyst noted that the situation is tense in the oil sector with producers competing to keep stable prices and avoid losses. The expected rise of oil offer indicates that prices will reach their lowest point in the first half of 2016.
Oil demand that meets the amount of demand is the main challenge facing producers in 2016 said Al-Shatti adding that expectations for the rate of demand is between 1.2 and 1.8 million barrel per day.
The analyst further said that the severe drop in prices will encourage more international consumption of oil thus increasing the rate of demand. Oil demand is also associated with the performance of China's economy the country's economic reforms and industries' conditions.
During 2015 OPEC's production rate was recorded at 31.1 million barrel per day while in November of the same year it reached 31.7 million barrels per day said Al-Shatti. These rates were recorded without the expected production of Iran Iraq and Libya that will pose a challenge to prices and demands in 2016 he explained.
As for the impact of the US oil market on supply and demand in 2016 the analyst said that the approval to sell US shale oil will have several effects. Selling shale oil will increase the profits of US refineries through importing US light crude and exporting medium and heavy crude oil he noted.(end) osj.tb.ag
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