Russia and Middle Eastern oil producers want to keep oil prices between $50 and $60 per barrel, RBC Capital Markets said at the weekend. It added that supply from the United States (U.S.) remained real problem for the Organisation of Petroleum Exporting Countries (OPEC).
Drop in U.S. fuel inventories forced oil price to climb above $52 per barrel on Friday amid plans from OPEC and major non-OPEC producers for a supply freeze agreement to help stabilise prices.
Managing Director/Global Head of Commodity Strategy at RBC Capital Markets, Helima Croft, said: “I think that Saudi Arabia, OPEC and the Russians hope that some U.S. production will come back but $50 to $60 is probably not enough to resurrect the entire U.S. shale complex. “I don’t think they are aiming for $70 to $80, because I don’t think they want to bring it all back.” Croft told CNBC at the weekend that Russia and the Middle East want a “steady grind higher, not a gallop” in terms of prices. Read more