Kuwait eyes $70-90 oil in 2010

Senior oil official from OPEC member says anything over $100 would be detrimental to producers.
Kuwait eyes $70-90 oil in 2010
By Eman Goma
Tue 11 Aug 2009 12:05 PM

An oil price of $70 to $90 a barrel in 2010 would be acceptable to OPEC-member Kuwait given the state of global finance, a top official was reported as saying in a Kuwait newspaper on Tuesday.

US oil traded at $71.05 on Tuesday, a few dollars below the $75 OPEC has targeted to attract investment in capacity to supply the world's future energy demand.

Imad al-Atiqi, a member of Kuwait's Supreme Oil Council told al-Seyassah newspaper: "$70 to $90 a barrel is considered an acceptable price for oil in 2010 amid the global financial circumstances."

The council is the top decision making body for oil policy in the world's fourth-largest exporter.

A price above $100 was detrimental to the interests of oil producers in the long-term, Atiqi said. High prices encourage development of alternative energy sources that reduces long-term demand for oil.

The country's oil minister said last week that there was no need for OPEC to cut production at its September meeting if oil prices stay where they are.

Oil has recovered from a low near $32 a barrel in December, a price that threatened the state budgets of major oil producers who had grown accustomed to much higher income from their principal revenue-earner.

With prices at current levels, Kuwait and neighbouring Gulf Arab oil producers are expected to generate budget surpluses. (Reuters)

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.