OPEC is expected to decide to continue its current oil production policy at its next regular meeting in June, Kuwait’s OPEC Governor Nawal Al-Fuzaia said at an energy industry conference in Qatar on Tuesday.
Asked if she thought OPEC would maintain its policy at the next meeting, Fuzaia replied:
“I think so because there is less than two months, removing weekend and summer time, before the next OPEC meeting.
“I don’t think there would be a big change in the oil market supply/demand in this time.”
OPEC decided at its last meeting in November to keep production unchanged, rather than cutting it to support sliding oil prices.
Fuzaia also said she didn’t expect oil prices to go below $40 a barrel. Brent crude is currently at about $58.
“It is difficult to predict (the) oil price point because it is not just moving on sentiment – prices are effected by geopolitics, disruption in Iraq, Iran,” Fuzaia said.
“Yes, there is an increase of production in Iraq, but the situation is still not clear.
“In Iran it is all linked with how the nuclear file will progress with the West. Even otherwise, I think the production in Iran will increase, but still not increase quickly, because the situation has been affected. The maintenance, recovery in field, bringing new equipment, will all take time.”