World oil prices are projected to rise to $70 a barrel in the second half of 2016, driven by growing demand for derivatives, a decrease in the number of operating oil platforms in the United States and Canada and the decline in oil output in Nigeria, Venezuela and Canada besides efforts being made by producers to stabilise output levels, researchers and analysts told the Conference on the Repercussions of the Oil Crisis on Arab Economies’ Management, organised by the Arab Administrative Development Organization (ARADO) in the Egyptian capital, Cairo, today.
In a set of recommendations issued today at the end of two-day of deliberations, the conference called on the oil producing countries to reconsider their subsidies to petroleum products, water and electricity services and restructure their prices according to new economic realities, introduce new fees and fines on economic activities and implement the value added tax.
The conference stressed that countries that depend heavily on oil revenues in their budget should introduce structural economic reforms, gradually privatize some economic sectors and relax legislative and regulatory measures to allow broader participation of the private sector in economic life.
The conference called on Iran to co-operate with other OPEC and non-OPEC producers to reverse the downtrend in oil prices.
''The current world oil crisis provides a fitting opportunity to oil producing countries to re-assess their development policies and work to diversify their sources of income, encourage and attract foreign investment and create a proper infrastructure for sound economies,'' the conference stressed.
The conference also called for supporting projects for renewable and clean energy.