THE TALL ORDER: $80/BBL
With Saudi Arabia reluctant to cut production, crude oil prices over the next decade depend greatly on producers' costs, says a veteran observer of oil markets and the Middle East.
An oil-price rise to $80-90/bbl in the next couple of years requires a production cut unlikely to be made by Saudi Arabia, says Fereidun Fesharaki, chairman of Facts Global Energy (FGE), London. Without a Saudi cut, Fesharaki writes in a March report, "prices can lag at $40-60/bbl for some time to come."
Lower growth in oil production in the US, he adds, will not support prices on its own.
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