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OPEC: Oil could rally to $60 by year-end

Global Arab Network - - Hannan Taha

Tuesday, 28 April 2009 00:18

World oil prices could recover to $60 per barrel by the end of the year if demand in the global economy picks up, OPEC Secretary General Abdullah al-Badri told Reuters in an interview.
OPEC Secretary General Abdalla el-Badri has warned that oil prices of $50 per barrel are "insufficient for continued investment" and urged a $70 barrel.

El-Badri says his organization will take into consideration signs of economic recovery in any decisions on possible production cuts at a meeting in May.

"I am sure if at the May meeting there is a need to cut, they will take that decision," el-Badri said Sunday. "In OPEC member countries, 35 projects have been delayed because of falling oil prices."

Production cuts by the Organization of Petroleum Exporting Countries since September have failed to raise oil prices to the $70 a barrel sought by members as the global recession erodes demand. The average price in the first quarter was $43.32 a barrel, 56 percent lower than a year earlier.

Algeria's Energy Minister Chakib Khelil, also speaking Sunday, predicted the barrel would hit $60 by the end of 2009.(AP)

The oil market is oversupplied because of production increases from non-OPEC countries even as OPEC members reduce output to stem a price slide, Algeria's Oil Minister Chakib Khelil said. Oil traded in New York, which reached a record $147.27 a barrel in July, reached $32.70 a barrel on Jan. 20 and ended last week at $51.55.(Bloomberg News)

"There is an oversupply of 720,000 barrels and it should be cleared," Khelil told reporters in Algiers. "Non-OPEC countries did not help us to stabilize prices," he said, adding that some countries had increased their production by 500,000 barrels a day.

Crude prices may reach $60 a barrel by the end of 2009, Khelil said.

Global Arab Network

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