Oil prices 'won't hit $100 for foreseeable future'

A key oil executive from Saudi Arabia – the world’s largest producer of oil - has forecast that oil will not hit prices of $100 a barrel for the foreseeable future – if ever.

Mohammed Al Madi, Saudi Arabia’s governor to OPEC said he didn’t think it would reach these levels again because if it did high cost producers, such as shale gas producers in North America, would flood back into the market and drive prices down

The price of oil on world markets has slumped by almost 50% over the past year. OPEC has chosen to not cut its level of production.

The situation is unlikely to change as far as Saudi Arabia is concerned as Mr Al Madi said his country would keep investing to maintain its current output capacity.