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30 November 2023

Oil prices forecast to settle at ‘satisfactory levels,’ says Kuwait Diplomatic Centre

By Wam

Oil prices are forecast to settle at "satisfactory levels" at the end of 2017, and predicted to stand at US$70 per barrel by 2022, according to Kuwait Diplomatic Centre for Strategic Studies.

In a report released on Monday, the centre said it made this forecast based on market conditions and predicted strategy by OPEC, noting that the prices would be particularly affected by the recent accord between OPEC and non-OPEC producers to slash the output.

However, it noted that the market glut has not yet been withdrawn, thus prices have remained largely unchanged.

"The prices will be tangibly affected by a host of factors, namely the recent deal, the growth of the American output and production by producers outside the organisation," said Kuwait News Agency, KUNA, quoting the report.

The report indicated a new approach by OPEC aimed at restoring market balance. OPEC has been betting that the non-OPEC producers would slash their production by 600,000 bpd.