The global oil prices are likely to remain under pressure in 2020 as the prevailing oversupply in the international market may continue next year, according to a senior official of the Ministry of Oil and Gas.
Speaking at the inauguration of 9th edition of the Middle East Artificial Lift Forum (MEALF), H E Salim bin Nasser al Aufi, Undersecretary of the Ministry of Oil and Gas, said, “Unfortunately or fortunately, which way you look at, there is going to be an oversupply in the global market in 2020.”
He added that the higher supplies might impact oil prices in the backdrop of no significant improvement in demand. “The message which we are getting, from recently concluded OPEC+ meeting in Vienna to discuss supply and demand scenario for the next year, is clear that we will have probably another year of oversupply. Oversupply potentially translates into lower oil prices or, at best, prices may stay at this level for probably another one or two years,” H E Aufi said.
According to H E Aufi, the oversupply will be mainly due to higher production by non-OPEC producers. Though, OPEC and other countries not complying with potential production cuts are also going to contribute to the oversupply.
“Higher supplies and softness in prices effectively mean tightening of belt for oil producing companies and also for companies providing services to oil producers,” H E Aufi said.
The MEALF 2019 under the theme ‘Rising Opportunity and Innovation’ was inaugurated at Grand Millennium Muscat under the patronage of H E Aufi. The opening ceremony witnessed the presence of a number of key officials, foreign diplomats and high level representatives from the world’s leading oil firms. With an audience of over 350, the three-day event is focusing on the increasing use of artificial lift technologies in oil production operations throughout the Middle East and is highlighting the central and increasingly important role artificial lift technology plays in oil production in the region.
With over 50 abstract submissions by technical experts of the industry, the three-day long MEALF 2019 event, which began on Tuesday, is emerging to be the only dedicated event for the artificial lift industry in the region and is providing an opportunity of networking with industry professionals, top executives and decision makers.
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