KUWAIT CITY: The price of oil could rise as high as $80 per barrel in mid-this year as Opec supply curbs make their full impact on the market, a Kuwaiti oil official said.
The Opec agreed last month to its deepest ever single supply cut of 2.2 million barrels per day to halt a collapse in oil prices of over $100 from a July peak over $147 a barrel.
US crude has risen nearly 50 per cent to trade at over $48 yesterday from a low of $32.40 on December 19 but is still well below its July peak above $147.
Oil prices would rise to an average of $60-$80 a barrel in mid-year, Kuwait's Supreme Petroleum Council member Mousa Marafie said.
The council is the country's highest body for energy policy decisions.
The recent Opec cut was starting to bear fruit, he said.
Full compliance among members of the group would boost prices significantly, he said.
Opec has agreed to curb production three times since September, for a total reduction in output of 4.2m bpd equivalent to about 5pc of global oil supply.
Kuwait is the world's seventh-largest oil exporter. It pumped around 2.45m barrels per day last month.