Oil Prices May Reach $90-110 per Barrel in Long-Term Perspective – Rosneft

MOSCOW (Sputnik) — Global oil prices may reach $90 – 110 dollars per barrel in the long-term perspective if they fail to rebound to $60-80 per barrel in the nearest future and cause industry to mothball the existing production projects instead of opening new ones, Russian oil giant Rosneft CEO Igor Sechin said.

“Look at the market fundamentals and it seems prices should soon rebound to the $60 or $80 a barrel… But if markets are distorted, and the rebound takes longer than it should, many current production projects will be mothballed — and the price will eventually climb to $90 to $110 a barrel,” Sechin wrote in an article published by Financial Times on Sunday.

Sechin noted that the current oil prices do not reflect the market realities and due to the expensive extraction, the fair price for a gallon of oil should be standing between $60 and $100.

Since June, 2014 the global oil prices have fallen by more than 50 percent due to the market oversupply.

Earlier in February Bloomberg reported citing the oilfield services company Halliburton that the US oil industry is currently examining the opportunity of re-fracking some 50,000 existing oil wells “using techniques that didn’t exist when they were first drilled.”