Oil price of $100 ‘will not create problems’
Energi ; Iran’s Opec governor said oil prices of $70-$90 per barrel would not hurt the global economy and that up to $100 might not create problems.
News wires 15 November 2010 02:09 GMT
“Consumers and producers are unanimous that the oil at $70-$90 prices are suitable prices and will not hurt the global economy,” Mohammad Ali Khatibi told the oil ministry’s official website, Shana.
“There are thoughts that increase in the price of oil up to $100 per barrel will not create problems for the market.”
Top oil exporter Saudi Arabia earlier this month shifted upwards the band from a price it has backed for around two years, saying oil at $70-$90 a barrel was comfortable for consumers. Global oil prices are now near $86.
The International Energy Agency said last week that Opec was raising production fast enough to meet growing demand and reducing compliance to the group’s target for output cuts.
Opec said in a report that its 11 members bound by oil production targets — all except Iraq — produced 26.89 million barrels per day of crude in October.
Opec said last week that demand for its oil would be higher than expected next year as economic growth accelerates with the help of stimulus programmes.
An improving economic outlook for many of the rich developed economies of the Organisation for Economic Co-operation and Development (OECD) was a key factor behind sharp upward revisions to demand forecasts, the producer group said.
Opec raised its estimate of global oil demand growth for next year by 120,000 barrels per day and now expects an increase of 1.17 million bpd in global oil consumption over this year.
It has imposed limits on members’ production for the past two years in an attempt to stabilise prices.
The group left its oil output target unchanged at a meeting on 14 October, as it has since making a record supply curb of 4.2 million bpd in December 2008.