Oil Seen at or Below $40 If OPEC Doesn't Extend Output Cuts
- Inventories, U.S. shale constrain higher prices: ADIA’s Ruehl
- Iraq, Iran seen gaining from production cuts at Saudi expense
Oil Resumes Slide on U.S. Stockpiles
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Crude will probably drop to $40 a barrel or below unless OPEC and allied producers extend their collective cuts in output beyond June, according to analysts including the Abu Dhabi Investment Authority’s head of research.
The six-month cuts that took effect in January have set a floor for prices, but an increasing supply of U.S. shale oil together with record-high inventories are keeping the per-barrel price of crude from rising beyond the upper $50s, Christof Ruehl said Wednesday at a conference in Dubai.