Saudi Arabia's oil minister expects oil prices to rise to $75 a barrel this year
Speaking in Vienna on Thursday before the meeting of oil cartel OPEC, Ali al-Naimi also said that there was no need to reduce oil production in the last round of talks, as the cuts that began on last year are now having an effect. He urged members of OPEC, which produces around 40pc of the world's oil reserves, to "stay the course."
OPEC has reduced its production quotas three times since September in a bid to stabilize oil prices, which fell from highs in excess of $ 147 per barrel in July last year to about $ 32 in December.
However, Mr. al-Naimi also said that profits were "not only critical," indicating that at least part of the recent increase could be attributed to an influx of speculative money betting on an economic recovery. "The price increase is a function of optimism best things come in the future," said Mr al-Naimi. Global oil inventories remain near a record.
In an interview published Wednesday in the Kuwaiti newspaper Al-Seyassah, King Abdullah of Saudi Arabia also said that the kingdom believes a fair price is $ 75 or maybe $ 80 a barrel, especially at this time. "
One of the major players in the Middle East oil privately told The Daily Telegraph last week that it expected inflation to return with a vengeance and oil prices could, once again, the violation of $ 100 per barrel level next year. The price of London Brent crude rose before the reunion, after hitting a six-month high the previous session.
OPEC has reduced its production quotas three times since September in a bid to stabilize oil prices, which fell from highs in excess of $ 147 per barrel in July last year to about $ 32 in December.
However, Mr. al-Naimi also said that profits were "not only critical," indicating that at least part of the recent increase could be attributed to an influx of speculative money betting on an economic recovery. "The price increase is a function of optimism best things come in the future," said Mr al-Naimi. Global oil inventories remain near a record.
In an interview published Wednesday in the Kuwaiti newspaper Al-Seyassah, King Abdullah of Saudi Arabia also said that the kingdom believes a fair price is $ 75 or maybe $ 80 a barrel, especially at this time. "
One of the major players in the Middle East oil privately told The Daily Telegraph last week that it expected inflation to return with a vengeance and oil prices could, once again, the violation of $ 100 per barrel level next year. The price of London Brent crude rose before the reunion, after hitting a six-month high the previous session.
