Oil prices can jump up by 20-30 dollars, if the producing countries will be able to meet and come to a final agreement, however, according to the national representative of Kuwait to OPEC Mohammad al-Shatti, at the present time there are several scenarios, including negative.
“It all depends on what the players say to the market,” said al-Shatti in an interview with TASS. The market, he said, reacted positively to the meeting of Ministers of oil of Saudi Arabia, Qatar, Venezuela, the OPEC and Minister of energy of Russia Alexander Novak.
“The prices soared to $ 10, even more. Before the next meeting, the market is satisfied, and at the end of the next meeting will be a reaction,” said the official. According to al-Shatti, if the next talks will be held and will be made a certain decision, players in the oil market will take some time to understand whether it impacts on the process of stabilization or not.
“The price can rise another 20-30 dollars”, – said the expert, adding that this optimistic scenario. Otherwise, the price per barrel may persist until the next step. “If the meeting does not take place, then I think prices will not fall,” he concluded.
In General, al-Shatti believes that major exporting countries ‘ serious intentions, which proves the meeting in Doha on 16 February. In this regard, it does not exclude a variant in which “producers will be able to say that they trust each other, comply with the terms of the agreement and can go to the reduction of oil production”.
Earlier it was reported that the meeting of oil-producing countries will take place on 20 March in Russia.
On March 2, President Vladimir Putin announced that an agreement with Russian oil companies about the freezing in 2016 oil production at the January level in General achieved.
Before that, the head of the energy Ministry of Russia Alexander Novak said that the decision to freeze the level of oil production joined the countries that produce 73% of oil in the world, this “critical mass”.
16 February in the Qatari capital Doha, Ministers of oil of Saudi Arabia, Qatar, Venezuela, included in OPEC and Russian energy Minister Alexander Novak held talks on improving the price situation on the oil market. The parties expressed their willingness to save, on average, in 2016 oil production at the level of January of the current year, if other countries – oil producers will join this initiative.