LONDON: OPEC Secretary-General Abdullah al-Badri has said that oil prices could move higher very soon.”Now the prices are around $45-$55 and I think maybe they reached the bottom and will see some rebound very soon,” he said. Benchmark Brent crude was close to $49 a barrel.
Badri warned that any OPEC oil supply cut would lead to spare capacity, a lack of investment and an eventual shortage and price spike.
“Suppose we cut production, and then we’ll have spare capacity,” he said in an interview. “Producers when they have excess capacity they will not invest.
“If they do not invest there will be no more supply, if there is no more supply there will be a shortage in the market after 3-4 years and the price will go up and we’ll see a repetition of 2008.”
“Maybe we will go to $200 if there is a real shortage of supply because of the lack of investment,” Badri said.
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