Saudi Arabia and other powerful OPEC members are reportedly discussing how to boost oil prices to $50 a barrel, a target they consider fair to both crude oil consumers and producers.
The private talks add to signs that the market’s nearly two-year rout is winding down, Gary Ross, one of the industry’s leading prognosticators, told Reuters Monday. He said oil should recover to $50 a barrel by the end of the year, thanks potentially to supply cuts from OPEC’s leading members.
“They want $50 oil. This is going to become the new anchor for global oil prices,” said Ross, founder and executive chairman of New York consultancy PIRA, who has consulted with OPEC members over decades. “While it may not be an official target price, you’ll hear them saying it. They’re trying to give the market an anchor,” he told Reuters.