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Mon 9 Mar 2009 02:55 PM

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Kuwait official sees $50 oil if OPEC cuts

Market still oversupplied despite previous compliance with OPEC's orders, Kuwaiti oil official tells KUNA.

Oil prices wil rise above $50 a barrel in the third quarter if OPEC cuts output by one million barrels per day at its meeting on Sunday, a senior Kuwaiti oil official told state news agency KUNA on Monday.The market remained oversupplied despite existing OPEC supply curbs, and the global economic slowdown would keep demand low until the end of the second quarter, Musa Marafie, a member of the Supreme Petroleum Council, told KUNA.

If OPEC keeps production targets unchanged, then prices will stay where they are, Marafie said. The group meets to set supply policy on March 15 in Vienna.

Compliance within the Organization of the Petroleum Exporting Countries with agreed cuts of 4.2 million bpd since September stood at around 80 percent, Marafie said.

Oil rose more than 1 percent to above $46 a barrel on Monday on speculation OPEC may agree to cut production further at a meeting this weekend. (Reuters)

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