Oil price set for recovery in 2016, UAE official says

Low oil prices are headed higher, a top-ranking policy-maker from the United Arab Emirates has said, with a range of $70-$80 per barrel ideal thereafter.

The commodity's ultimate scarcity means the bounce is inevitable, Ali Al Mansoori, the head of Abu Dhabi’s Department of Economic Development, told Bloomberg in an interview on 25 October.

The price of crude will probably recover next year to $60 per barrel, after bottoming out at $45, Al Mansoori said.

“It is a gift to the world that oil has dropped to $50,” he added, as it allowed buyers to put in place economic policies needed to foster economic growth in the next five years.

“Would we like for oil to stay at $50? Absolutely not. We would like oil to go to $70, $80, but beyond that I think it would hurt the economic growth.”

His remarks came amid forecasts for little change in growth in gross domestic product in the Emirates next year.

As of 13:09 front month Brent crude futures were 0.63% lower to $47.69 per barrel on the ICE.