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$50 is the magic number for oil, Pimco CIO says

A Pimco managing director added his voice to the chorus of energy experts saying $50 per barrel is the magic number for crude oil on Wednesday.

Brent and WTI crude futures traded at around$49.10 and $46.35 respectively on Wednesday, having steadily gained since Friday on renewed speculation OPEC may yet freeze production.

"We think the right price over the next couple of years — we are pretty close to the right price — is in the fifties. That is where supply and demand gets balanced," Mihir Worah, Pimco CIO of real return and asset allocation, told CNBC.

WTI futures have gained around 11 percent since the start of the year, but remain sharply below the levels above $100 traded at prior to the massive commodities rout that began in July 2014.

This year's rocky ride in crude prices has hinged on fears regarding the global supply glut, China's economic slowdown and the impact on energy demand and hints as to future trends in production.

OPEC members will hold an informal meeting in September, amid speculation that the Saudi Arabia-led group of major oil-producing countries will finally agree to limit production in order to boost global oil prices. This will come after recent discussions between Russia and Saudi Arabia in Vienna.

"As far as the Saudi-Russian OPEC meeting, we think it is just headlines. Both the Saudis and the Russians...


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