Saudi Arabia's oil price target revealed

Saudi Arabia's oil price target revealed
By Euronews
Share this articleComments
Share this articleClose Button
Copy/paste the article video embed link below:Copy to clipboardCopied

Saudi Arabia reportedly wants crude oil to rise to around $60 a barrel this year to encourage new investment but not boost US shale oil output.


Saudi Arabia wants crude oil prices to rise to around $60 a barrel this year.

That is according to a report by the Reuters news agency quoting sources from OPEC countries and the oil industry.

Around $60 is the level the Saudis and their Gulf allies – the United Arab Emirates, Kuwait and Qatar – believe would encourage investment in new fields but not lead to a jump in output by US shale oil producers.

Exclusive: Saudi Arabia wants oil prices to rise to around $60 in 2017 – sources

— Reuters Top News (@Reuters) February 28, 2017

An agreement last November by OPEC and other major producers to pump less pushed up prices by $10 a barrel and appears to be holding, but analysts expect benchmark Brent crude to be short of $60 this year, averaging $57.50 dollars a barrel.

In recent weeks it has been trading around $56 a barrel.

Will US #shale#oil production derail #opec strategy ?? #opecdeal#oilprice#glut#oott

— Alexis Ashi (@AlexisAshi) February 28, 2017

The problem for the traditional producers like Saudi Arabia is that the break-even price for US shale oil producers fell last year to an average of $35 per barrel, according to a report from consultancy Rystad Energy issued earlier this month.

Huge cost-decline in US tight/shale #oil industry. Wellhead #breakeven prices now 50% lower than three years ago. Chart by RystadEnergy</a>. <a href=""></a></p>&mdash; Ketill Sigurjonsson (AskjaEnergy) February 20, 2017

US shale producers started to step up production again when crude prices first topped $50 a barrel in May 2016. Advances in technology have made it easier for them to adapt quickly to oil price fluctuations.

Share this articleComments

You might also like