Oil prices could drop to as low as $20 per barrel next year, according to both an Organization of Petroleum Exporting Countries (OPEC) minister and a Goldman Sachs analyst.
Venezuelan Oil Minister Eulogio del Pino said that OPEC could not enter a price war and needed to find a way to stabilize the oil market. “OPEC has to do something very soon … We don’t agree with the position that says the market some way is going to dictate the price of crude oil. We don’t agree with that position of Saudi Arabia,” del Pino said on the sidelines of the Gas Exporting Countries Forum (GECF) Summit in Tehran on Sunday, as reported by Reuters.
In June, OPEC chose to keep its production targets at 30 million barrels a day in an effort to maintain market share and in response to the shale boom in the U.S. With Iran set to announce its production targets after sanctions are lifted, del Pino said the current market is “destroying the price of crude oil.” When asked how low it could go next year with no change in OPEC’s policy, del Pino’s response was: “Mid-20s.”