OPEC Hopes For Further Oil Price Recovery Despite Glut

OPEC Hopes For Further Oil Price Recovery Despite Glut
Angola's oil minister says that $80 per barrel may be right for crude, joining a chorus of OPEC officials and delegates hoping for a further price recovery in months to come despite a global glut.

Reuters

VIENNA, June 2 (Reuters) - Angola's oil minister said on Tuesday that $80 per barrel may be right for crude, joining a chorus of OPEC officials and delegates hoping for a further price recovery in months to come despite a global glut.

"I would like the price (to) go up, but it is not easy," Jose Botelho de Vasconcelos told reporters.

OPEC meets on Friday and is widely expected to maintain its production policy. Last November, OPEC refused to cut output and chose instead to defend market share, adding to the supply surplus arising from booming U.S. oil output.

The decision prompted a crash in oil prices to as low as $46 per barrel in January, although crude has recovered to $65 in recent weeks on hopes of a slowdown in U.S. output growth.

On Monday, Saudi Arabia's oil minister Ali al-Naimi said he saw supply thinning and demand improving although he added that it could take time for the markets to rebalance as supply was still seriously exceeding consumption.

Naimi gave no oil price outlook. However, several OPEC officials who asked not to be identified told Reuters they saw crude rising to $70-80 a barrel in coming months and 2016.

In the United States, the upcoming driving season would encourage a further increase in demand, one of the officials said.


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