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OPEC president sees $80-$100/b oil price range for rest of year
ALGIERS
Petroleumworld.com, Mar 24, 2008
OPEC president Chakib Khelil said Sunday that he expected oil prices to
remain within a range of $80-$110/barrel for the rest of the year although
prices might weaken slightly during the second quarter from current levels
because of an expected fall in demand.
Speaking on Algerian state television, Khelil blamed high oil prices on
the fall of the US dollar against other major currencies, a weaker US economy
and speculation in energy futures markets rather than on a shortage of supply.
He also ruled out an emergency OPEC meeting before the group's next scheduled
gathering in September.
Khelil, who is also the Algerian oil minister, said global demand for
crude oil was set to fall by 1.2 million b/d in the second quarter, "which
will lead to a slight fall in the price oil."
"However, despite this slight fall, oil prices will establish a level
between $80 and $110/b," Khelil said, noting that given the fall in the value
of the US dollar, prices were still below levels seen in the 1980s in real
terms. In view of the expected fall in demand, there are no plans to call an
emergency OPEC meeting before September, when the producers' club will
consider the possibility of a production cut, Khelil said.
OPEC ministers last met in Vienna on March 5 and agreed to hold their
production target for the 12 members bound by output restraint -- minus Iraq
-- at a collective 29.673 million b/d.
Oil prices have since soared with US benchmark light sweet crude oil
futures hitting an all-time high of $111.80/b before retreating to levels
closer to $100/b. The front-month WTI contract traded Monday at $100.69/b at
0622 GMT.
Story by Platts
Platts 24 03 08Copyright© 2008 respective author or news agency. All rights reserved.
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