By Osama Jalal
KUWAIT, Nov 15 (KUNA) -- World oil prices are predicted to continue dwindling away in the coming period, possibly down to USD 50 a barrel unless the overall global economic situation improves, a Kuwaiti oil expert expected here on Saturday.
But, unless oil producers decide to cut production and slim supply and international economic conditions get better, the current drop in oil prices will continue nonstop, Khaled Bodi told KUNA.
The dip in global oil prices over the recent months was the result of global economic conditions mainly in Europe amid a prevailing state of pessimism at the international oil market, said Bodi, the chief of a Kuwaiti consulting center.
There are fears over low demand for oil in light of high supply which is estimated at roughly two million barrels per day, he said, adding that this quantity is not too huge but it causes pressure on oil prices.
Bodi believed that the sole way for the Organization of the Petroleum Exporting Countries (OPEC) to stop uncontrollably dwindling oil prices is to take a decision to cut its member states' oil output.
He rather cautioned that oil prices could shot down to USD 50 per barrel unless there would be subsidized prices on the part of major producers, especially OPEC which provides around one third of global oil production.
The Kuwaiti oil expert advised OPEC members to set out long-term policies to address such fluctuations and price falls, and not to rely upon oil as the only source of national income. Price of Kuwait crude oil per barrel on Friday fell by USD 2.12 to USD 71.40 pb, compared to USD 73.52 a day before, the Kuwait Petroleum Corporation (KPC) said here earlier today.
On the global market, the price for Brent Blend for January went up to USD 79.41 per barrel and that was due to purchasing operations after a week-long wave of losses which brought the oil price to its lowest since 2011.
US crude price reached USD 75.82 per barrel, a price backed up by increasing demand for heating fuel to face the cold winter in America. (end) asj.tab.mt