Oil seen stuck below $60 this year, despite OPEC output cuts - BBG

According to energy lender Arab Petroleum Investment Corp. (Apicorp), oil prices are expected to remain confined below $ 60/ barrel in 2017, despite the high compliance to the OPEC output cut deal reached last December, in a bid to bring stability to the prices, Bloomberg reports.

Apicorp said Monday in a report, “While oil prices are expected to recover toward the end of the year, they will remain in the $50-$60 band given the high level of stocks.” 

“We expect OPEC to maintain the agreed production quota at around 32.5 million barrels a day for the rest of the year,” the lender noted.

Apicorp, based in Dammam, Saudi Arabia, is owned by the 10 member states of the Organization of Arab Petroleum Exporting Countries, with Saudi Arabia, Kuwait and the United Arab Emirates each holding 17%.