Saudi’s Al-Falih says $60 oil possible by year-end

Saudi Arabia’s minister of energy, industry and mineral resources has reportedly indicated that a $60 oil price is possible by the end of the year.

Speaking at the World Energy Congress in Istanbul, Khalid Al-Falih said no matter the price the kingdom was prepared to undertake its ambitious Vision 2030 reforms but also warned against drastic production cuts that could impact markets.

This followed a meeting last month where Organisation of the Petroleum Exporting Countries (OPEC) agreed to modest oil output curbs to help rebalance the market.

Read: OPEC agrees to modest oil output curbs

“We are seeing the convergence of supply and demand,” said Al-Falih yesterday, according to Saudi Gazette. “It is not unthinkable we could see $60 [a barrel] by the year end.

“OPEC should make sure not to crimp too tightly and create a shock to the market. “We do not want to shock the markets into a process that could be harmful.”

Al-Falih also suggested the kingdom had become “a bit complacent” during the era of high oil prices but was now fully committed to reforms.

Read: In depth: Saudi prince unveils plans to end “addiction” to oil

“The (2030) vision will lead to a stronger and more robust Saudi Arabia,” he said.

In other news at the event, Russian President Vladimir Putin indicated the country would be willing to join OPEC in an oil production cap.

Read: Putin says Russia prepared to join OPEC oil cap

International oil benchmark Brent is currently hovering around $53 a barrel.