OPEC's El-Badri: $90/Bbl Oil Wouldn't Hinder Economic Growth

OPECs El-Badri: $90/Bbl Oil Wouldnt Hinder Economic Growth
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Πεμ, 4 Νοεμβρίου 2010 - 18:44
An oil price of $90 a barrel wouldn't hinder global economic growth, the top official in the Organization of Petroleum Exporting Countries said Thursday, echoing similar statements by the group's largest producer Saudi Arabia.
An oil price of $90 a barrel wouldn't hinder global economic growth, the top official in the Organization of Petroleum Exporting Countries said Thursday, echoing similar statements by the group's largest producer Saudi Arabia .

Speaking to reporters on the sidelines of a presentation of the organization's annual outlook report, OPEC Secretary General Abdalla Salem El-Badri said "$90 [a barrel] won't hinder growth," adding he doesn't expect prices to reach $100 a barrel next year.

He spoke after oil prices in
New York hit a fresh six-month high of $86.68 a barrel earlier Thursday. Crude contracts in London also broke through $88 a barrel. El-Badri, however, reiterated that $75-$85 a barrel is a comfortable price for both producers and consumers, though it isn't a target.

"$75-85 is comfortable to producers and for investments, and for consumers they can really do their business as usual at this price," he said.

El-Badri's remarks came after Saudi Oil Minister Ali Al-Naimi appeared Monday to signal a greater acceptance of somewhat higher prices. Speaking at a conference in
Singapore , Naimi appeared to suggest a price range of $70-$90 a barrel was acceptable for consumers, slightly broadening his previous stance that $70-$80 a barrel is needed to balance the needs of consumers and producers.

Some hawkish OPEC members have also been pushing for a price hike to $100 a barrel.

"When I look at the world economy at this time, I really don't want to judge, because there's a lot of uncertainty as to 2011, but I don't think we'll see $100 in 2011," El-Badri said.

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