Oil will 'never see' prices like $100 a barrel again, says Saudi prince
Saudi Prince Alwaleed bin Talal has claimed that oil prices will never again soar over $100 a barrel.
While talking to Maria Bartiromo from Fox Business News, the prince said: “If supply stays where it is, and demand remains weak, you better believe [the price of oil] is gonna go down more.
“But if some supply is taken off the market, and there’s some growth in demand, prices may go up. But I’m sure we’re never going to see $100 anymore.”
While OPEC has flatly refused to slash oil production, low demand and an international supply glut have kept prices on the decline for several months.
He added: “The decision to not reduce production was prudent, smart and shrewd. Because had Saudi Arabia cut its production by one or two million barrels, that one or two million would have been produced by others.
“Which means Saudi Arabia would have had two negatives, less oil produced, and lower prices. So, at least you got slammed and slapped on the face from one angle, which is the reduction of the price of oil, but not the reduction of production.”
Since June 2014, the price of oil has fallen 56% from around $107 to below $47 per barrel.