SABIC: Oil could reach $60/barrel by end-2016
Oil markets may be about to reach some stability after a torrid run that pushed prices to their lowest level in over a decade, the vice chairman and acting chief executive of Saudi petrochemicals giant, SABIC said Wednesday.
Yousef Al-Benyan told CNBC on the sidelines of the Boao Forum for Asia that while this year and 2017 will be challenging for the industry, the outlook for 2018 and beyond is optimistic.
"Of course, prices are not really at levels where we wish (them to be) but that's normal in a cyclical market," Al-Benyan said, adding that he expects crude oil at $60 a barrel by the end of 2016.
"A lot of people think that when crude oil price is up, it gives you much better returns on investment...(but) stability is very important not only for us as a producer but also for the customer and that's our main focus at this point."
Both U.S. WTI and European Brent crude oil prices are about 1 percent lower above $41 a barrel in Asian hours after Tuesday's deadly attacks in Brussels but are still higher than the 13-year-lows hit earlier this year.
"(Prices are) driven by global markets, not manipulated by one group, it's a supply and demand situation," he told CNBC from Hainan island in China .
Rather that fixating on feedstock prices, Al-Benyan said the company is focused on internal inefficiencies, external opportunities and serving customers effectively.
While economic growth is slowing in China, Al-Benyan said SABIC will stay the course as its sales volumes are still healthy.
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