Oil price could rebound spectacularly says EniNews // January 23, 2015
Italian oil group Eni has warned that the oil price could shoot up to US$200 a barrel if the Opec cartel fails to cut supplies.
Eni's chief executive, Claudio Descalzi, was quoted on the BBC News web site as saying that said the oil industry would cut capital spending by 10-13 per cent this year because of slumping prices. He said that would create longer-term shortages and sharp price rises in four to five years' time.
Mr Descalzi was speaking at the World Economic Forum in the Swiss resort of Davos.
He said: "Opec is like the central bank for oil which must give stability to the oil prices to be able to invest in a regular way."