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DAVOS, January 21. /TASS/. The secretary-general of Organization of the Petroleum Exporting Countries (OPEC) Adballa Salem El Badri does not rule out a drop in oil prices below $40 a barrel.
“The oil market is oversupplied, while the demand is declining amidst weak economic growth forecasts,” he said at the World Economic Forum in Davos, Switzerland. He added that the crude oil prices might fall “to $40 a barrel and even below that level.”
The problem is that the plunge in oil prices was too sharp, and fundamental market indicators do not correspond to a 40-50% drop, Adballa Salem El Badri said.