Opec’s El-Badri: Oil prices could hit $200 amid lack of investment
Opec's secretary-general has said oil prices could soar to $200, as the current oil price rout prompts prudcers to cut back on investment in new supply.
Abdalla El-Badri said "producers, when they have excess capacity, they will not invest."
"If they do not invest there will be no supply, if there is no more supply there will be a shortage in the market after three-four years and the price will go up and we'll see a reptition of 2008."
Oil prices have shed around 60 per cent since June last year, falling below $49 per barrel on a global supply glut. The rout was compounded by the Organisation of Petroleum Exporting Countries' (OPEC) refusal in November to cut its output, a move which would've boosted the black stuff.