Oil prices to stabilize at $70 per barrel in short-term perspective — OMV ex-CEO

Oil prices will stabilize at about $70 per barrel in the short-term perspective, OMV ex-CEO Rainer Seele told TASS in an interview ahead of his resignation.

“I believe that the oil price would stabilize at this level now, while further development would be defined by demand,” he said, answering a question whether the $70 price will stay for long.

The perspectives would become clearer after all pandemic-related restrictions are lifted, he believes.

“As for the mid-term and long-term perspective, I think that the price will be defined by the supply, because investments in oil extraction are small,” he noted.

According to Seele, the role of OPEC+ as the market regulator will increase.

“I believe that the extraction and stockpile volumes will have an even higher importance in the future. The readiness to invest in the development of new oil fields is very low. And this means that the share of national oil companies in the total oil extraction will only grow. In this regard, in oil to ensure a stable supply to oil markets in the future, OPEC+ can become an important regulatory instrument,” the ex-CEO said.

“I believe that this alliance will have a certain role in the future,” he concluded.

Rainer Seele led OMV since July 2015. In 2021, he decided not to extend his service and left the company on September 1 this year. He gave his interview for TASS several days before his resignation.
Source: TASS