Kuwait's OPEC governor also says organisation cannot cut oil output alone when producers from outside are raising supplies
Kuwait's OPEC governor said on Tuesday that this year would be tough, with oil prices seen recovering only after 2016 but remaining between $40 and $60 a barrel until 2020.
"The expectation (is) that 2016 will not be an easy year when it comes to prices. They can remain volatile (at) current levels ... prices will remain low," Nawal Al-Fuzaia told an energy forum in Kuwait.
"Things will be tough. From now until 2020 ... I don't think there will be big changes in the oil market in four years. We are talking about $40-60, that is after 2016," said Fuzaia, who is No. 2 in Kuwait's delegation to the Organization of the Petroleum Exporting Countries after the oil minister.
Any additional crude supplies could weaken prices further, she said, referring to Iran's return to the oil market after the lifting of international sanctions.
"The impact of the Iranian crude depends on when it would come to the market, what are the volumes and grades and where will it be marketed ... But any additional supplies from current levels will put pressure on prices."
There has been more than one request in the past six months for an OPEC emergency meeting to address sliding oil prices, Fuzaia told reporters on the sidelines of the conference.
"But if there was no real and clear cooperation to reduce the supplies from all sides, whether from outside OPEC and heavyweight producers, there will be no (need) for a meeting," she said.
"On the contrary, if there was a meeting without a concrete outcome to cooperate, it would have a very bad impact on the oil market."
Asked about comments from a Lukoil official who said Russia needed to work with OPEC to reduce supplies, she said:
"OPEC welcomes any cooperation from countries outside OPEC to work with it to stabilise the market and reach suitable prices for all producers ... I read these comments as you did," she said.
Fuzaia said earlier that the Organization of the Petroleum Exporting Countries cannot cut oil output alone when producers from outside the group are raising supplies. The two sides should work together to stabilise the oil market, she said.