“Based on forecasts regarding growing demand, the oil price is expected to fluctuate between $60 and $70 [a barrel],” Mehdi Assali, director for OPEC affairs at Iran’s Ministry of Petroleum, said.
“Cut in oil production from non-conventional resources in the US is one of the reasons of oil price hike in the past weeks,” he said.
Assali said it costs OPEC less than $20 to produce a barrel of oil while non-conventional oil costs more than $45 a barrel. He added that shale oil recovery is uneconomical.
He said the market has realized that US shale oil production would stop as prices keep falling.
Your Comment