JEDDAH, Nov 4: Oil prices are likely to remain near current levels over the next couple of years barring unexpected shocks, International Monetary Fund head Rodrigo Rato said on Saturday.

Our view -- and market futures tend to agree -- is that oil prices will stay at their current level for the next two years unless something unforeseen happens, Rato told Reuters in Jeddah where he was attending a regional meeting of Gulf finance ministers.

Rato said investments by Gulf Arab countries in oil production capacity would help keep prices stable.

US light crude settled $1.26 higher at $59.14 a barrel on Friday, after falling 83 cents on Thursday. London Brent crude gained $1.28 to $59.15 a barrel.

Oil is down about $20 from its mid-July peak of $78.4 and is hovering near the bottom of a range of $57-$62 that has held since early October.—Reuters