Oil prices are likely to stay relatively weak for the rest of this year due to ample supply from traditional Middle East producers and a resurgence of US shale production, a Reuters survey forecast.
Reuters monthly survey of 28 analysts predicted the global oil benchmark North Sea Brent crude would average $61.60 a barrel in 2015, close to current levels.
So far this year Brent has averaged close to $58 a barrel, down from almost $100 in 2014.
The Organization of the Petroleum Exporting Countries (Opec) is likely to decide at its meeting in Vienna next week to keep its joint production target unchanged at 30 million barrels per day (bpd) but maintain output above that level, analysts said.
OPEC ministers will meet in Vienna this week for the second time since oil prices began to plummet last June, with little to do but stay the course on production from the cartel’s members.
Almost everyone is in agreement that the OPEC meeting, which is scheduled to be held next week, will be short due to lack of need for any action to be taken, Arab Times reports.
“As a matter of fact, why should the organization do anything when the oil price is around 60 per barrel, which is far better than its price of 45 per barrel for over three months? Even though every OPEC member is producing to the maximum, they all seem to find the current situation satisfactory and suitable.”
“In fact, no one had expected the organization’s decision to not reduce production, which was issued at its last meeting, would turn out to be successful. Now everyone is onboard and does not care about the production cuts.”
Bloomberg reports: “Saudi Arabia maintained crude production at a record this month, helping send Opec output to the highest level since October 2012.”
“Saudi Arabia, Opec’s top producer, pumped 10.25mn bpd in May, unchanged from April and the most in a monthly Bloomberg survey going back to 1989. The kingdom exported more crude because of higher Asian demand amid increased use of domestic electricity.”
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