In the medium term, the price of oil could rise to $ 200 per barrel. This was stated by the President of Ecuador, Rafael Correa, reports El Universo.
“Cessation of investment that we experience in the oil sector, the closure of hundreds of drilling, for example in the United States, because drilling ceased to be profitable at such a low price — all this will lead to the fact that in the medium term will rebound in price to 200 dollars,” said Correa.
He also said that the positive outcome of the negotiations between Russia and Saudi Arabia on the situation in the oil market.
On February 16, Russia and several OPEC members (Saudi Arabia, Qatar, and Venezuela) agreed to freeze oil production at the level of 11 January. During the day the intention to join the agreement also said Iraq and Kuwait. Iran has approved this decision on 17 February. The main goal of the agreement is to support oil quotations, which for the half year declined by 70 percent. At the moment the price of oil stabilized at $ 30 per barrel.