2017.02.2804:05:00UTC+00Saudi Arabia Eyes $60 Crude Prices in 2017-Sources

Saudi Arabia aims for crude prices to rise close to $60-per-barrel levels this year, sources from OPEC and the oil industry stated.

The price target is the level that the Kingdom and its Gulf allies perceive would entice investment in new fields but would not result in a rise in U.S. shale production, people privy to the matter said.

OPEC and other producers have committed to a historic agreement last year to withdraw a significant volume of output beginning January 1. The landmark coordinated cuts are intended to bolster prices and to help the market recover from a supply glut.

Prices have rallied by over 14% since the November deal, but are still trading within a certain range price despite the record compliance rate from participants.

OPEC officials that the cartel is not eyeing a specific oil price range and only looks to rebalance the market. But privately, Saudi and its OPEC allies in the Gulf region are hoping to see a higher level as the low energy prices have hit their finances and induced worries of a supply shortage in the future. But they also do not want it to rise at levels that will prompt its rival producers in the U.S. to bolster production once more, sources stated.

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