The credit agency said continued high levels of production by global oil producers were significantly exceeding growth in oil consumption, predicting the supply-demand equilibrium will only be reached by the end of the decade at around $63 per barrel for Brent.
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He said during his life he has seen six oil cycles of high and low prices. “This will not continue”, said Badri, who was speaking at the first OPEC-India Energy dialog in New Delhi.
BMI research said in a report that more downside pressure is expected in the coming months. Lifting the ban could drive the most important change in the nation’s oil policy in more than a generation, allowing the world’s biggest oil and gas producer to join other countries in allowing unfettered access to its supplies.
Even with a global glut in oil supplies set to last well into 2017, indications are emerging that a recovery in prices could get underway sooner rather than later.
The discount of crude in NY to global marker Brent earlier dropped to an 11-month low amid expectations that a 40-year-old ban on most American crude exports will be lifted.
There is no immediate prospect of large-scale oil exports from the United States because domestic refineries have increased their processing of USA crude while domestic oil output has levelled off thanks to the slump in oil prices.
At around 1700 GMT, Brent crude for January stood at $38.58, up 66 cents compared with Monday’s close. Pradhan said during his hour-long meeting with Badri and his team, he sought “reasonable and responsible” pricing from the Opec.
“The weather is very mild with reduced demand for heating oil”, said Oystein Berentsen, managing director of crude oil at Strong Petroleum.
Crude oil prices surrendered earlier gains in Asian trade Wednesday, as most traders expect the U.S. Federal Reserve to raise interest rates this week, which would buoy the greenback and make crude imports more expensive for buyers paying with foreign currencies.
Global oil prices have now fallen to their lowest point since February 2009 as prices loom below $36, according to global benchmark Brent which calculates prices at $36.68 a barrel.
“The OPEC countries continue to produce oil without limits, as they compete for market share, further saturating the market”.
The euro gained 0.1 per cent to US$1.0944 following Tuesday’s 0.6 per cent drop, while the yen traded at 121.73 per dollar after falling 0.5 per cent last session.
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Things look a tad brighter on the demand side, with the Paris based International Energy Agency seeing a rise of about 1.8 million barrels in 2015, nearly double the rise in 2014.
