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Economy

Petronas expects oil price around $50-$60/barrel for 3 years

Malaysia agrees to oil output cuts until 2018 to help steady crude price

A worker walks on oil pipe at West Qurna oilfield in Iraq's southern province of Basra.   © Reuters

KUALA LUMPUR (Nikkei Markets) -- Malaysia's state-run Petroliam Nasional Bhd, or Petronas, expects crude oil price to hover around $50 a barrel-to-$60 per barrel over the next three years after the oil-exporting Southeast Asian country agreed to extend a global output cut deal struck between the world's top producers of the fossil fuel.

Oil prices may remain volatile as traders position to capture opportunities from price swings, Petronas said in its Activity Outlook 2018-2020 report. Compliance to a global output cut, U.S. producers' response, and demand growth are critical for price strength, the report said.

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