Oil prices likely to remain between $70-80 this year: H E Rumhi

September 03, 2018

Oil prices, which have been trading over US$70 per barrel since the beginning of 2018, are unlikely to breach US$80 level this year, according to H E Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas.

Speaking at a ministerial panel discussion at the World Heavy Oil Congress & Exhibition (WHOC) on Monday, H E Rumhi said oil prices are likely to remain between US$70-US$80 per barrel this year and he does not expect the prices to be higher than these levels.

Answering a question on whether oil could touch US$90 per barrel following the likely sanctions against Iran, he said, “On supply side, sanctions on Iran could be an issue and on demand side, trade issues could impact the growth in fuel consumption. Besides this, production declines in other locations such as Venezuela, Mexico and Nigeria could be an issue. However, surplus production capacities in the GCC countries like Saudi Arabia, Kuwait or the UAE could compensate it to some extent.”

H E Rumhi added, “Prices spiking too high suddenly is not good for us. And at the same time, we want to protect the prices from going too low.”