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Shell CEO van Beurden says oil prices will be around $60 by the end of the decade

 | : 27 Sept 2017

It’s “not unreasonable” to expect oil prices at $60 a barrel by the end of the decade, Royal Dutch Shell CEO Ben van Beurden told CNBC’s “Managing Asia.”

To be sure, that’s not a large rise from current levels.

Brent crude rose 0.38 percent to trade at $58.66 a barrel in Wednesday Asia trade, after hitting a 26-month high on Tuesday, while U.S. crudewas higher by 0.5 percent at $52.14 at 12:00 p.m. HK/SIN.

Van Beurden said forecasting oil prices in the short term was “very difficult,” but he still expected gains.

“I do think oil prices are going to go up over time as a result of the tightening of the market,” he said. “It’s not unreasonable to expect that if you want to make financial projections going out in the future, you want to make projections around $60 oil by the end of the decade.”

He noted that growth in oil demand has been fairly consistent, increasing approximately 1.6 million to 1.7 million barrels a day, with the exception of outlier years affected by events such as the financial crisis. FULL ARTICLE

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