“Consumers and producers are unanimous that the oil at
$70-$90 prices are suitable prices and will not hurt the global economy,”
Mohammad Ali Khatibi told SHANA.
“There are thoughts that increase in the price of oil up to
$100 per barrel will not create problems for the market.”
Top oil exporter Saudi Arabia earlier this month shifted
upwards the band from a price it has backed for around two years, saying oil at
$70-$90 a barrel was comfortable for consumers. Global oil prices are now near
$86.
The International Energy Agency (IEA) said on Friday the
Organization of the Petroleum Exporting Countries was raising production fast
enough to meet growing demand and reducing compliance to the group’s target for
output cuts.
OPEC said in a report this week its 11 members bound by oil
production targets — all except Iraq — produced 26.89 million barrels per day
(bpd) of crude in October.
OPEC said on Thursday demand for its oil will be higher than
expected next year as economic growth accelerates with the help of stimulus
programs.
An improving economic outlook for many of the rich developed
economies of the Organization for Economic Cooperation and Development (OECD)
was a key factor behind sharp upward revisions to demand forecasts, the
producer group said.
OPEC raised its estimate of global oil demand growth for
2011 by 120,000 barrels per day (bpd) and now expects an increase of 1.17
million bpd in global oil consumption in 2011 over 2010.
It has imposed limits on members’ production for the past
two years in an attempt to stabilize prices.
The group left its oil output target unchanged at a meeting
on Oct. 14, as it has since making a record supply curb of 4.2 million bpd in
December 2008.
Oil prices up to $90 won’t hurt global economy: Iran
Publication Date:
Mon, 2010-11-15 00:02
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