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Keep oil prices under $60 as world’s oil markets are centered in Houston!

Philip Verleger, president and founder of PK Verleger, discusses his thoughts on OPEC and oil prices. He speaks with Bloomberg’s Alix Steel and Jonathan Ferro on “Bloomberg Daybreak: Americas.”

Watch: Oil at $58 in fear trade but expect it to drop to low $40s soon

Verleger advises OPEC to consider that the center of the world oil market has moved to Houston.

“OPEC needs to keep prices below $60 a barrel because at $60, this leads to a substantial increase in oil production in the US leading up to 2022, and so they will continue to face that problem,” Verleger said.

Read: Could the November OPEC meeting be a game-changer for oil?

“Rolling up the agreement over to at least this period next year, which appears to be the case, OPEC might want to increase production to let prices go down and slow the advance from non-OPEC production.”

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