Kuwait Oil Minister Ali al-Omair said on Monday he expects the current oil price rally to continue into the second half of 2015, Reuters has reported.
“I think it will last,” Omair said of the recent rise in prices, speaking on the sidelines of an energy event.
“It will start holding gains now and hopefully in the second half of 2015 we will see better prices,” he said, adding that the current market surplus was less than 1.8mn barrels per day.
The statement comes as Brent, the oil price benchmark, climbed above $60 a barrel for the first time this year and up by 30% since its mid- January low.
Meanwhile, improved economic activity in Europe boosted hopes for an increase in the demand for crude. Many energy companies announced spending cuts in what has been seen as an indication that they may be preparing to curtail production.
Should crude supply start to decrease and demand for oil begins to rise, we might start seeing a more steady recovery of the oil price, analysts have said.
