Russian oil company Lukoil’s CEO Vagit Alekperov said last week crude oil prices will reach $40-$50 a barrel by-mid 2016, as current market conditions fail to stimulate new exploration projects, Kallanish Energy finds.

“I believe somewhere between $40-$50 a barrel is where the price will sustain during 2016,” Alekperov said in an interview with television station CNBC. The CEO added the current price scenario doesn’t “incentivize new exploration projects, so the volume of oil output will be going down and, as a result, prices will start climbing.”

However, Alekperov said the market still requires decisions from OPEC members to stabilize oil prices, something that could come during the group’s February meeting. “Saudi Arabia may be the coordinator for an action plan,” he said.

Queried whether the U.S. decision to lift the 40-year export ban would impact competitiveness and add a new burden to the oil glut, Alekperov said “I don’t think this move will significantly affect the market. It might simply bring the price of oil produced in the U.S. in balance with the Brent price.”

Russia’s second largest oil producer believes with the U.S. exporting crude, there will be a “swap” in the market, with the U.S. selling in the open market, but still buying heavy oil.

https://www.kallanishenergy.com/2015/12/28/oil-prices-to-sustain-at-40-50bbl-in-mid-2016-lukoil-ceo/

ok

Amazing recovery

I hope the U.S of this world will allow this to happen.