Tuesday, October 6, 2015

OPEC chief: Oil prices will rebound as investment is slashed - MarketWatch

LONDON — Oil prices are set to rebound as steep cuts in global oil investments crimp supplies, OPEC’s chief said Tuesday, and added that he was open to discussing the current oil market turmoil with the U.S.
The remarks come as many members of the Organization of the Petroleum Exporting Countries have been running deficits as they fight for market share against American tight oil instead of oil prices CLX5, +0.89%  .
Speaking at the Oil and Money conference here, OPEC secretary-general Abdalla Salem el-Badri said there will be “less supply in the very near future. Less supply means high prices,” he said.
El-Badri said OPEC expects global investments in oil and gas projects to be reduced by 22.4% this year. At the same panel, Fatih Birol, head of the International Energy Agency, which represents oil consumers, also said he expects that expenditure will fall by 20% in 2015, “the highest drop in history.”


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