UAE economy minister says $60 oil possible in the summer

The United Arab Emirates’ economy minister has reportedly said oil prices could hit $60 this summer, following a new high of $50 last week.

“It’s possible for oil prices to reach $60 or more during this summer” as demand increases in the United States, Sultan Al Mansoori said at a conference in Abu Dhabi on Monday, according to Bloomberg.

His comments followed remarks from Standard Chartered global chief economist Mario Maratheftis suggesting oil will end the year higher than $60.

On Thursday, oil prices rose above $50 a barrel for the first time this year following supply disruptions in Canada and Nigeria and a decline in crude inventories in the United States.

Read: Oil hits $50 for the first time in 2016

ICE July Brent crude rose to $50.51 a barrel and West Texas Intermediate also went over $50, rising 0.7 per cent to $50.21. They later declined to below $50 a barrel.

The $50 milestone represents an almost doubling of prices since 12 year lows in January and a return to levels seen in November last year.

Brent last traded at $60 a barrel in July 2015.

“We expected supply to collapse. Demand is still very strong. I would expect oil prices to keep rising,” Maratheftis told Bloomberg TV.