Kuwaiti oil chief hopes for $70-80 oil for 2009

Oil minister says $100 oil price would 'drag global economy into recession'.
Kuwaiti oil chief hopes for $70-80 oil for 2009
By Andy Sambidge
Tue 04 Aug 2009 12:09 PM

Kuwait's oil minister on Tuesday said he was optimistic about crude prices and hoped they would stabilise to between $70-80 by the year-end.

Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, who is also minister for information, said the global economic crisis seemed to be emerging from recession.

Speaking to KUNA News Agency on the sidelines of his visit to Italy, he said that oil prices continued to fail to reflect the supply and demand mechanisms, at a time when data indicated a surplus in supply.

He said that the recent improvement in the price of the oil barrel, which exceeded $72 on Monday but fell back to below $71 on Tuesday, reflected the state of optimism that came with the improvement of financial markets alongside speculations.

He added that reports of profit-making by large companies also indicated that the economic recession curve had hit the bottom and that economic growth would once again resume.

Sheikh Ahmad said: "We do not want to see oil prices exceeding $100, as this will only drag down the economy into the quagmire of recession."

He hoped that prices would remain at $70-80 until the end of the year, saying that this was suitable for the economic status that the world was now going through.

The Kuwaiti minister arrived in Rome on Monday night, as part of a European tour that also saw him in Belgium and Holland.

The aim of the tour is to inspect Kuwaiti oil investments in these countries.

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