Oil prices are likely to trade above $40 per barrel provided economic activities resume to support demand, Petroleum Association of Japan President Tsutomu Sugimori said on Monday, APA-Economics reports citing Reuters.
OPEC, Russia and other producers agreed on Saturday to extend record oil production cuts until the end of July.
“They have confirmed adherence to supply cuts, underlining their strong commitment and unity toward balancing global oil supply with demand,” Sugimori said in a statement.
“The future of the COVID-19 pandemic is still highly unpredictable, but we anticipate oil prices will be traded at $40s per barrel if demand picks up with a resumption of global economic activities while demand and supply are headed toward an equilibrium.”
Sugimori is also head of JXTG Holdings Inc Japan’s largest oil refiner.