“For the first time, media is resisting oil price fall. Moreover, disputes between Republicans and Democrats in the US can sway oil prices. Therefore, it is predicted that oil prices would reach $70-90 in the coming months,” Bijan Namdar Zangeneh said.
He said that the sole lever wielded by OPEC in the oil market is production.
“OPEC can influence the oil market only through the lever of supply,” Zangeneh said.
“In 2014, the total world oil demand was 91.1 mb, 55.9 mb was supplied by non-OPEC, 5.8 mb was NGL and 29.5 mb was provided by OPEC,” he said, adding that non-OPEC would contribute 57.3 mb of the total 92.3-mb demand for the current year.
Zangeneh said the US shale oil production stood at 1.5 mb/d when OPEC cut its production by 2.5 mb/d in 2009. He added that the US shale oil production has now reached 6 mb/d.
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