Opec head forecasts oil will rebound rather than fall to US$20

He also says that producers outside grouping should be first to reduce output amid surplus

Published Thu, Jan 22, 2015 · 09:50 PM

London

OIL prices will rebound rather than extend their decline to as low as US$20 a barrel because a collapse since June isn't merited by global supply and demand, Opec's secretary-general said.

Producers outside the Organization of Petroleum Exporting Countries should be first to reduce their output amid a surplus that's pushed crude below US$50 a barrel, Abdalla El-Badri said in an interview with Bloomberg Television at the World Economic Forum in Davos, Switzerland on Wednesday. Iraq, Opec's fastest-growing supplier, said it needs to boost output to compensate for revenues eroded by the price slump.