OPEC chief sees oil price at USD 70 to USD 75 by year end
AFP reported that Mr Abdalla Salem El Badri general secretary of OPEC as saying that he expected oil prices to
rise to USD 70 to USD 75 per barrel by the end of this year.
Mr El-Badri oil cartel chief said that "If this current trend continues, if recovery as we see it coming we see a
range of USD 70 to USD 75 by year end."
Oil prices rose in Asian trade on last Friday to above 6 month highs on an unexpectedly big drop in US crude
reserves. New York’s main contract, light sweet crude for July delivery, gained 31 cents to USD 65.39 per barrel.
Brent North Sea crude for July delivery was 23 cents higher at USD 64.62.
Crude prices have surged in recent days due to growing optimism that energy demand would pick up on hopes the US
economy is on the mend. A day earlier, the Organization of Petroleum Exporting Countries had decided to leave
output unchanged, despite a glut of crude worldwide.
Mr El Badri said that “That was an excellent decision. I am very happy with it.” He was optimistic about the
prospects of recovery.
He said that "There's some light at the end of the tunnel, but it’s still a very weak light. We have to see
demand change before we take any action. I can't say we've finished. We have to wait and see the situation on
the market at the time of the cartel's next meeting in September in Vienna. But market fundamentals at the moment
would not allow OPEC to actually start increasing production."
He added that "If global oil stocks were reduced to such an extent that so-called "forward cover was to fall below
52 days and prices were high, OPEC will take action to remedy that. But he did not see that happening before the
year end or the first quarter of 2010 and he did not say what would constitute a high price from OPEC’s point of
view. Let’s reach that price and then we’ll talk about it."
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