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Oil Must Hit $110/bbl Before Saudi Arabia Eases Output Cuts: Andurand

OIL

Crude oil prices must hit $110/bbl before Saudi Arabia will ease its current crude production cuts, Pierre Andurand said, cited by Bloomberg.

  • Declining oil inventories in the coming months will increase the need for supply at some point, Andurand said.
  • “The Saudis will have to decide when and at what price to bring supply back,” he added. “For me, an adjustment likely will come around $110/bl. So there is room to the upside for prices,” he added.
  • Saudi Arabia’s current output policy is currently the deciding factor for crude prices, he said.
  • Andurand sees oil demand reaching a high later this decade, before easing back.

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