Our World in 2018

ENERGY & CLIMATE
Oil production in Kazakhstan. The former Soviet republic could bring more oil
into the market over the coming years.
FILE PICTURE
both politics as well as economics
and the political relationship in
particular is very important for the
Kremlin.
T
history been able to establish a
good relationship with the Saudis
and they see that as very important
verses geopolitical strategy in the
years ahead,” Weafer said, adding
that “the Kremlin was willing to
twist the arms of the oil executives
to comply” with the deal and
price.
“Clearly the Kremlin wants this
deal to continue because for them
it is very good politics having this
arrangement with the Saudis and
having this improved relationship
with Saudi Arabia. It helps Russia
refocus its geopolitical strategy
away from the West towards a
more global diversification the
Middle East, Asia and elsewhere,”
Weafer said.
Urquhart Stewart said, “It’s
fascinating that the policies that
we had of this year where the
agreement between OPEC and
Russia had broadly been sustained
would mean that actually the price
should stay roughly where it is.
However, it’s interesting to see
that the outages from Libya and
also from the Forties field have
pushed the price up. It just shows
how sensitive it is.
If the global economy keeps on
growing at the current rate - and
there’s a good reason to think that
it will do – actually there’s going to
be sustainability to the oil price.
I can’t see a push up to 80, but I
can see it standing at mid 50s with
spikes up into the mid 60s”.
In 2018, crude oil
prices are likely
to move between
$55 to $70 per
barrel depending
on the geopolitical
tensions, but also
on an ongoing
deal between the
Organization of
Petroleum Exporting
Countries (OPEC)
and non-OPEC
members.
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2018 | OUR WORLD