Oil Prices reached bottom unlikely to drop further : Iraqi Minister

Jan 22, Kuwait,
Iraqi Oil Minister Adel Abdul Mahdi has said that crude oil prices have already reached its bottom and are unlikely to fall further.
Addressing a conference in Kuwait yesterday, he said that there is no real justification for the big and persistent drop in oil prices which have plunged nearly 60 percent since June. The Iraqi Minister said, current low prices will knock out part of the high-cost production, especially shale oil. Iraq is the second largest OPEC (Organization of the Petroleum Exporting Countries) producer after Saudi Arabia.

Brent crude traded at 48.42 dollars yesterday as traders bought the commodity at cheaper prices following a slide to near six-year lows. However, analysts predict the prices may fall even further as weakening global demand and a supply glut show no signs of abating after the latest IMF forecast for the global economy.