Follow us on:   

Oil to hover around $50 average in 2017 – Saudi Arabia
January 18, 2017, 11:13 am

Saudi Arabia’s Energy Minister Khalid Al-Falih told reporters at Davos that OPEC will monitor oil output and production to ensure that the agreement to curb output is met by all [Xinhua]


The commitment and execution of OPEC and non-OPEC members to curb output in line with an agreement last December is still holding strong, Saudi Arabia’s Energy Minister Khalid Al-Falih said at Davos late Tuesday.

He praised Russia for being ahead of its scheduled reduction pledges.

“We will have a meeting on Saturday and Sunday and [Russian Energy] Minister Novak will be there. He will be administering the ministerial meeting. And I will be there to just make sure that we all have same understanding,” the minister said.

Al-Falih promised that OPEC will monitor oil production and export of complying nations.

But he cautioned that oil prices in the coming year may not hover much above the $50 line mark.

International benchmark Brent Crude fell 1.35 per cent on Wednesday to $54.72 a barrel.

Al-Falih’s estimates come in tandem with a report released by the International Monetary Fund (IMF) in Washington earlier this week in which it said that oil prices will stabilize around $51.20 in 2017 and possibly rise to an average of $53.10 in 2018.

It’s 2017 projection is nearly 20 per cent higher than the 2016 average price.

The BRICS Post with inputs from Agencies