The CEO of the world's largest oil company says crude prices will remain steady and will not change dramatically in the months to come.
In an interview at the annual IHS CERA conference in Houston, Saudi Aramco CEO Khalid Al-Falih said, "The price range that we have seen recently—$70 to $80 (a barrel)—I believe has been supportive of new investment."
With oil prices at an eight-week high as U.S. gasoline and distillate fuels have tightened, Al-Falih, doesn't see crude oil prices breaking far out of their recent range.
Oil prices have run a few dollars above this range today, but oil futures have been in same basic trading range since October, and certainly since the last OPEC meeting in December. Saudi Aramco's CEO expects that to continue.
"I believe for now and for the foreseeable future that that equilibrium has found is one that is condusive for producers to continue to invest and for consumers to continue to consume," he said.
Al-Falih's rationale has been echoed by members of the Saudi Oil Ministry and other OPEC ministers, making it likely OPEC won't make a change to production when the ministers meet in Vienna next week.
OPEC raised its global oil demand forecast today, but still remains concerned about economic recovery around the world.