Oil production in Asia’s biggest…
OPEC cut oil production by…
Oil prices could surge above $85 a barrel by the end of this year, according to analysis by Michael Rothman, considered to be one of the most astute oil experts on Wall Street, CNBC reports.
Rothman heads the research firm Cornerstone Analytics, through which he advises governments from all over the world, the oil-rich Saudi royal family and its affiliates, and energy firms.
Barrel prices hit a 13-year low on the 11th February this year. Last week, they surged to above $50—the first time they have done so since July last year.
The Nasdaq price for a barrel of Brent oil stood at $50.20 on Monday.
The Qatari head of the Organization of Petroleum Exporting Countries (OPEC) has said previously that new investment in the sector requires barrel prices to rise above $65.
OPEC has made no strides in accelerating price growth over the past two months.
Two separate pushes to reduce oil production in an effort to force prices upwards have been rejected by Saudi Arabia, who fears Iran’s rise if it does not join the proposed freezes.
Russia, the 13-member bloc’s rival, said OPEC has “practically stopped existing as a united organization” before the proposed freezes failed to get approved for a second time on 2 June.
Iranian officials have made it clear that they will not participate in production halts as the government works to restart the country’s economic engine. International sanctions lifted earlier this year had locked Iran out of the global oil trade for years.
Related: Oil Supply Disruptions Highest In Five Years
"Under the present circumstances, the government and the Oil Ministry have not issued any policy or plan to the National Iranian Oil Co. (NIOC) towards halting the increase in the production and exports of oil," Rokneddin Javadi, who heads the state-run National Iranian Oil Co. (NIOC), said last month.
Recent reports suggest the Shiite-majority country is on the verge of achieving pre-sanction export levels, with its shipments reaching European and Asian nations.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…