Oil price forecast and the best price for Saudi Arabia and OPEC+
Mr. Choeib Boutamine
March 25, 2024
Mr. Choeib Boutamine, energy expert and CEO of Ranadrill, stated to Attaqa-energy-platform that extending the voluntary cuts (that was approved by the OPEC+ recently) until the end of the second quarter of 2024 amounting to about 2.2 million barrels per day, will contribute to stabilizing oil prices, though relatively, in the coming weeks.
He stressed that it was not the only factor affecting the global oil market, as the geopolitical situation and the global economic crisis play an important role in determining the features of the market.
Mr. Choeib Boutamine “Based on this data, I find it difficult for the price of Brent crude to reach $90 in the second quarter of 2024”.
He went further saying that the price of $77 to $80 may be the most suitable for producers and even consumers, but exceeding the price of $85 per barrel will encourage production outside OPEC, while prices below $75 do not serve OPEC+ much economically, as they do not serve the price-quantity equation compared to what is reduced daily.
Thus, the CEO of Ranadrill, has said that the current problem is that OPEC+ countries are reducing about 5.8 million barrels per day, and despite the continuation of two wars (in Ukraine and occupied Palestine) prices are approximately $83, i.e the alliance is losing some of its market shares in favor of some non-Opec producers.
