Business | Oil & Gas
Top Opec official expects oil prices to recover in late 2009
Opec Secretary-General Abdullah Al Badri says oil prices would recover in the second half of 2009 and are likely to reach $75 a barrel in early 2010.
- Agencies
- Published: 12:00 December 24, 2008
Riyadh: Opec Secretary-General Abdullah Al Badri says oil prices would recover in the second half of 2009 and are likely to reach $75 a barrel in early 2010.
In a report published in Al Hayat newspaper on Wednesday, Al Badri said he expects Opec countries to stand by supply cuts agreed upon at the meeting in Algeria, that aim to bring balance to an oversupplied market.
Oil Ministers of the Organisation of the Petroleum Exporting Countries announced their largest production cut at the December 17 meet, slashing 2.2 million barrels per day from oil markets in a race to balance supply with rapidly crumbling demand for fuel.
"Some activists in the market believe that the Organisation will not comply with its decision. That is untrue. The Organisation ... is aware that there is a problem coming in 2009," said Badri.
"We think that all the problems have accumulated in the end of 2008 and will appear in 2009," he said.
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