Oil will stabilise around $55 to $65 a barrel as Opec (Organization of Petroleum Exporting Countries) fulfills its agreement to cut output, with stockpiles and shale production keeping prices from rising much more, said the Middle East head of Russian energy giant Lukoil.

The Opec, working in tandem with 11 other producers including Russia, reached an agreement last year to reduce output to clear a persistent oil glut and revive prices.

Brent crude oil, a global benchmark, has rebounded about 20 per cent since Opec's decision to curb supplies for six months starting from January 1, reported Bloomberg.

Russia’s second-largest oil producer hasn’t had to cut its production of about 400,000 barrels per day (bpd) in Iraq as a result of the curbs pledged by Opec, stated Gati Al Jebouri in a Bloomberg television interview.

He pointed out that Opec’s cutbacks have brought a period of stability to the market.

“We have a lid because of shale oil and we have a bottom because of the already proven decision and willingness of Opec to maintain prices at a reasonable level,” remarked Al Jebouri.

Lukoil is seeking opportunities for growth in the Middle East as Iran opens more of its oil fields to international partners and other countries need technology to develop deposits, Al Jebouri told Bloomberg TV.

Lukoil, he stated, was also interested to pump oil from offshore fields in Abu Dhabi and produce heavy crude in Oman and Kuwait. The UAE capital, which has the lion's share of oil in the emirates, is looking for partners to start developing its offshore fields by 2018, he added.