By Amr Adel
Dubai-Mubasher: Oil prices are expected to recover in early 2017, said officials at EFG-Hermes.
In a press conference held in Dubai on Sunday, the officials said crude prices would take a longer time to reach $60-70 a barrel.
In January, oil prices dropped 70% to $30 a barrel, their lowest since June 2014.
Simon Kitchen, director of MENA strategy at EFG Hermes, said the current indicators show that oil prices will remain lower for a long time, but may recover in early 2017.
"Oil prices will take a longer time to regain their record highs," he said, adding that it is difficult to reach $60-70 in the short term.
Some Middle East countries such as Saudi Arabia, Iran and Iraq sell oil at lower prices in order to maintain their market shares. "There are countries sell oil at $20 a barrel," Kitchen said.
He added that Saudi Arabia was hit most by the fall in oil prices as its oil revenues declined, which weighed on the government spending plans.
Translated by Abdul Maguid Aboshahla
