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Sun 5 Jul 2009 02:06 PM

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Kuwait wants oil price to remain above $60

Oil minister says Gulf state needs oil price at level for it to meet budget requirements.

Kuwait wants oil price to remain above $60
OIL PRICE: Kuwait wants the oil price to remain above $60 a barrel. (Getty Images)

Kuwait wants to see the price of oil stay above $60 a barrel, the OPEC member's oil minister said on Sunday.

"We will be watching the market very closely," Kuwait's Oil Minister Sheikh Ahmad al-Abdullah al-Sabah told reporters at parliament. "We would not like to see the price go below a certain level so it at least meets our budgetary requirements."

When asked what that level was, Sheikh Ahmad said "$60, at least for Kuwait."

US crude slipped to a four-week low of $65.63 a barrel on Friday as the jobless rate in the United States rose to a 26-year high.

Crude fell nearly $8 in four days last week from an eight-month peak of $73.38, on signs the economy of the world's top energy consumer was still struggling.

Speculation and changes in the strength of the dollar were playing a large part in oil price volatility, Sheikh Ahmad said.

Last week, the Gulf Arab state's oil minister said a price over $100 a barrel would hurt the global economy.

A breach of $100 would not necessarily bring a boost in oil supply from the Organization of Petroleum Exporting Countries (OPEC), Sheikh Ahmad said on Sunday.

"I can't increase production without seeing the price and condition of the world economy," Sheikh Ahmad said. "All these have to be taken into account."

OPEC members pledged to cut supply by 4.2 million barrels per day (bpd) last year, as they tried to match what they pumped with what the shrinking global economy consumed.

The group has kept those output curbs in place this year, and next meets to discuss supply policy in September.

OPEC was satisfied with the price of oil, OPEC President Jose Botelho de Vasconcelos said on Friday. (Reuters)

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KUWAIT GUY 11 years ago

The rest of the Gulf Countries are moving ahead with their new refinery plans and Saudi Aramco never hesitated. Kuwait is closed for the summer and nothing is happening here in the oil business here except talk !