Gulf members of the Organization of Petroleum Exporting Countries, led by Saudi Arabia, would like to see oil prices stabilize around $100 a barrel as high prices could slow down economic growth and hit demand, Gulf OPEC delegates said Monday.
Gulf members of the Organization of Petroleum Exporting Countries, led by Saudi Arabia, would like to see oil prices stabilize around $100 a barrel as high prices could slow down economic growth and hit demand, Gulf OPEC delegates said Monday.

"There is a consensus now between Gulf countries and in fact some non-Gulf members of the Organization of Petroleum Exporting Countries that $100 a barrel is a suitable price for both producers and consumers," a delegate from one Gulf country said.

"We know if prices are too high they will affect everyone," the delegate said.

The price of a barrel of Brent--the most widely used benchmark globally--rose near $117 a barrel mid-September and remained above $100 Monday. At 1600 GMT, it stood at $109.50 a barrel, down $1.92.

Saudi oil minister Ali al-Naimi said earlier this month that the world's top oil exporter is concerned about oil price levels given that they aren't being caused by supply shortages and that the Gulf state will take all necessary steps to moderate them.

This was the first time Mr. Naimi had spoken publicly since OPEC in June agreed to maintain its existing oil-production ceiling and pledged to rein in overproduction, after some members complained that a glut of oil caused by higher output from Saudi Arabia and other Gulf countries could lead to a price crash.

Mr. Naimi has previously said he considered $100 a barrel to be the ideal price for Brent to balance the needs of consumers and producers. He stressed Monday that the Arab world's largest economy will continue to work with other Gulf countries and OPEC to defend the stability of the oil market.

"Gulf countries led by the Saudis have said the price above $100 doesn't reflect fundamentals; $100 is the most acceptable," a delegate from another Gulf country said.

A senior Gulf source said that Saudi Arabia was producing around 10 million barrels per day last week in an attempt to lower oil prices. The source declined to say how much the kingdom was currently producing or selling to its customers.

High Saudi output helps keep oil prices down, benefiting fragile economies in the U.S. and Europe , which rely on the kingdom to keep up supply as they implement sanctions intended to press Iran over its nuclear program.

Other Gulf countries have also increased their output in recent months following calls by the U.S. and other governments to make up for displaced Iranian barrels in anticipation of sanctions.

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