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OPEC countries need oil prices above $100/barrel to break in budgets: Experts

OPEC countries need oil prices above $100/barrel to break in budgets: Experts

DOHA: Energy expert Dr Mamdouh G Salameh says that, with the exception of Qatar and possibly Kuwait, most OPEC countries need oil prices above $100 a barrel to break even in their budgets. Here he puts the focus on Iran’s inflated oil reserves, saying that Iran may actually need nuclear power to fuel its economy and also to remain an oil exporter in the coming years.
At a recent discourse organised by the Arab Center for Research and Policy Studies on the proposed Iranian nuclear agreement and its repercussions, one statement by Dr Mamdouh G Salameh, an international oil economist and consultant for the World Bank in Washington DC on oil and energy, drew everyone’s attention.
He says that the lifting of sanctions on Iran as a consequence of the nuclear agreement will hardly affect the global oil prices or the oil market, particularly against a projected growth in global demand. Dr Salameh answers some of the most pertinent questions that the global energy industry is examining and he also predicts the oil price range.
He says, “A range of $100-$110/barrel is a suitable price for producers as it provides them with acceptable revenues enabling them to continue to invest in oil exploration and production and this is also good for the global economy, the oil industry and global investments.”
He projects that the current low oil prices will start to rebound soon, reaching $65-$70/barrel by the second half of 2015 and “possibly recouping all their loses by 2016/2017.”