The Organisation of Petroleum Exporting Countries is likely to decide to keep production unchanged when it meets in June, Kuwait’s OPEC governor has said. Â
Speaking at the Gulf Intelligence energy conference in Doha on Tuesday, Nawal Al-Fuzaia said that she thought OPEC would maintain its policy at the next meeting in Vienna.
“I think so because there is less than two months, removing weekend and summer time, before the next OPEC meeting.
“I don’t think there would be a big change in the oil market supply/demand in this time.”
Fuzaia said she did not expect oil prices to go below $40 a barrel. Brent crude is currently at about $58.
“It is difficult to predict (the) oil price point because it is not just moving on sentiment – prices are affected by geopolitics, disruption in Iraq, Iran,” Fuzaia said.
She said Iraqi oil production growth was uncertain after severe fluctuations in past months, while the return of large oil volumes from Iran could take longer than expected, Reuters reported.
“Yes, there is an increase of production in Iraq, but the situation is still not clear,” she said.
“In Iran it is all linked with how the nuclear file will progress with the West. Even otherwise, I think the production in Iran will increase, but still not increase quickly, because the situation has been affected.The maintenance, recovery in field, bringing new equipment, will all take time,” she concluded.
At its last meeting in November 2014, OPEC decided to keep oil produciton the same, which some have said added to the global production glut and sent prices plunging.Â
Oil prices have more than halved since its highs in June last year hitting a six-year-low in recent months.Â
