The oil price at around US $70 per barrel is satisfactory to oil exporters and is not damaging the world economy, Opec president Edmund Daukoru said recently.
Opec said at its conference last month it would keep output near a 25-year high for now, satisfied the policy is easing pressure on consumer economies.
Saudi Oil Minister Ali Al-Naimi said: “Demand is very well satisfied.
I think the market is very comfortable and very well supplied. We are very happy with the situation.”
Daukoru said world prices had dropped from record levels close to $80, as a ceasefire between Israel and Lebanon held, there was a mild hurricane season in the Gulf of Mexico and some recovery in Nigeria’s output.
“The current price is satisfactory —there’s no damage to the projected global level of gross domestic product growth,” Daukoru said.
Opec’s priority is to ensure stability rather than target a specific price range, he said, without giving a price level at which Opec would cut production.
“We want to tame the volatility so the swings are not too wild one way or the other,” Daukoru said.
The 11-member exporters’ organisation is pumping almost flat out, with only KSA having spare capacity.
Daukoru has begun talks with other Opec members about the thorny issue of Opec secretary general post, which has been stalled since 2003 as Iran and Kuwait both want the post.
The post, which represents the cartel and helps co-ordinate policy talks among members, often exposes political divisions in the cartel.
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