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Oil may reach $40 if Russia, OPEC up oil output

Oil may reach $40 if Russia, OPEC up oil output

Mubasher: Russia and OPEC are expected to increase oil output to stand a chance amid tough competition with the US, Reuters reported on Saturday, citing a Russia’s finance minister Anton Siluanov.

However, such a step may drag down oil prices to $40 per barrel or less for up to a year, Siluanov added.

The minister added that the consequences of the decline in oil prices could include the reduction of the US output due to the increased production cost of shale oil.

Earlier in April, OPEC cut its global demand outlook for last year and this year.

Oil supplies from OPEC slid to their lowest level in four years in March, as Saudi Arabia continued to trim production, while output from economically-embattled Venezuela waned.