OPEC official says crude prices may have bottomed, warns of spike to $200
Crude oil futures finished lower in choppy trading, with Nymex crude sliding 1%, to close at $45.15/bbl and Brent sliding 1.3% to $48.16, but the day's headline grabber was the commentary from the OPEC Secretary General that he thought oil prices would stop declining at around current prices.
Abdullah al-Badri told Reuters that crude oil prices may have hit bottom, and even warned of a risk of a future price spike to $200/bbl if investment in new supply capacity is too low.
Defending OPEC's decision to cut output to retain market share, al-Badri warned that any oil supply cut would lead to spare production capacity, a lack of investment and an eventual shortage and price spike that could exceed 2008's rise above $147/bbl.
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