MOSCOW, January 21 (Sputnik) — Claudio Descalzi, the head of Italian energy company Eni Spa, urged members of the Organization of Petroleum Exporting Countries (OPEC) to act to restore stability in oil prices, otherwise oil prices could rocket to $200 per barrel within the next few years due to low investment now, Reuters reports.
“OPEC is like the central bank for oil which must give stability to the oil prices to be able to invest in a regular way,” Descalzi said, as quoted by the BBC.
Energy giants Total and BP announced earlier today that they will cut back on shale oil projects, a sign that falling oil prices are being felt across the industry, reports CityAM.com, London’s daily business newspaper.
In total, Brent crude oil more than halved its price, which went down from $115 per barrel in June to $46 this week.
According to the most recent forecasts by US Goldman Sachs, over the next six months the price of Brent oil could fall to $43 per barrel with WTI crude oil reaching $39 per barrel.