18:59 GMT +324 March 2017
    The world has entered the era of low energy prices. With the world’s major oil producers unwilling to cut down their production, global oil prices will not go up above $50 a barrel until 2020, energy policy expert Ariel Cohen told Radio Sputnik.

    Ariel Cohen: Oil Prices Won't Go Above $50 per Barrel Until 2020

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    The world has entered the era of low energy prices. With the world’s major oil producers unwilling to cut down their production, global oil prices will not go up above $50 a barrel until 2020, energy policy expert Ariel Cohen told Radio Sputnik.

    Cohen, who is the director of the Center for Energy, Natural Resources and Geopolitics at the Institute for Analysis of Global Security, said that low oil prices are hurting all oil-producing countries. However, Saudi Arabia, OPEC's largest producer and the oil market maker, is hurt less than others, because the cost of oil production in Saudi Arabia is very low compared to other countries.

    The Saudis are always trying to expand their market shares. Currently, with Iran coming into the market, as international sanctions against Tehran were lifted, it would be harder for Saudi Arabia to expand its market shares further, Cohen said.

    This means the Saudis would not cut their production, resulting in the large supply in the global oil market.

    "I do not foresee oil going up much above $40, maybe $50 a barrel… plus-minus, give or take, $50 a barrel until 2020," Cohen told Radio Sputnik.

    Saudi Arabia has maintained production levels over the past year above 9.6 million barrels per day, while oil prices have declined to below $27 per barrel last week.

    Earlier today it was reported that Russia and Saudi Arabia have signaled their willingness to curb oil production amid rapidly falling oil prices. Proposals to organize a meeting of OPEC members and other oil-producing countries are being negotiated, according to the German newspaper DWN.

    Russian Energy Minister Alexander Novak said it is still too early to make any actual conclusions about possible cuts, adding that the question is now being discussed.    


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    • avatar
      Bogus nonsense.....nobody knows where oil prices are headed...$50 could be reached by March if OPEC and Russia agree on cuts....Trillions in capex hav been deferred and depletion never sleeps...oil could easily reach $100 by year end as US shale rig counts and production go off a cliff.
    • avatar
      jasin reply toJg38691(Show commentHide comment)
      Jg38691, I have to agree with you on that one.
    • FeEisi
      China's economy dictates whether oil sells high or low, not OPEC or production cuts.
    • Hagbard Celine
      I wish I had Ariels crystal ball, I would make a killing on the stock market.

      Fact is, coal is on its way out as the core energy supply with hydrocabons trailing at some distance.

      The market for natural gas will last the longest due to the fact that it is an excellent raw material for the chemical industry and it has the lowest C02 emissions.

      However, Russia will need to continue diversifying its economy but not hastely.

      Haste makes waste.
    • avatar
      Everyone have it's own theories.
      ALL that is really needed is to create elasticity. IF say Russia, reduce production, to meet demand, There will be no extra reserve that MUST be given near free.
      Russia in return MUST have , for export , two reserves. One for when demand explodes. The other for sell when price raises and create profit.. And NO investors. This elasticity, will just may balance the price.
      IF OPEC does this too.. IF WEST allows it, because they in a conspirancy to SPLIT Russia further, then prices may be at least better. Not the best.

      Anyways FALL is around the corner. Be ready. Prices will rise, and the magic may end by fall.
      That window be great to help those homeowners MESSED with foreign currency home loans. Those PIGS , are doing the same they did in U.S. JUST GIVE LOANS. To get the properties in their hands. They not even check if they will pay or not. Is a Washington , U.K, E.U scheme.That's how Lehman Brothers went belly up, and the 2008 mess began. STOP IT BEFORE S TOO LATE!!
      The rest is to restore reserves. No time for laurels yet.
      KEEP diversifying economy with gadgets, better cars etc.
    • avatar
      jasin reply toHagbard Celine(Show commentHide comment)
      Hagbard Celine, That's the main flaw in his argument. He knows very well that a real market has too many unpredictable facets. Perhaps he is speaking on behalf of the NWO gang, that prices will be forced at that level until 2020. NATO keeps using that no-end-in-sight psyop on the Russian people to try to get them to turn against Putin.

      NATO aggressors also keep implying that there'll be several years of siege against Russia's economy.
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