Sultan bin Saeed al-Mansouri said the world could not afford to let oil stay at its current level of $50 a barrel for Brent crude
The level of $80 a barrel is seen as an ideal price for oil as the world economy moves to higher growth, the United Arab Emirates' Minister of Economy Sultan bin Saeed al-Mansouri said on Sunday.
"The minister of energy looks at $80 as the ideal price of oil as we go to the next phase," Mansouri told reporters before the start of an international business conference.
He said the world could not afford to let oil stay at its current level, which is roughly $50 a barrel for Brent crude. The world economy is expected to pick up in the second half of 2016, he added.
"We could see a pick-up in China and some other parts of the world," Mansouri said, adding that the decrease in the oil price was a chance for other economies to review their policies and build growth momentum.
On the impact of low oil prices on the UAE's own economy, Mansouri noted that the UAE had substantial funds that were invested internationally, and said returns on these investments would make up for fluctuations in oil prices.
He said the world could not afford to let oil stay at its current level, which is roughly $50 a barrel for Brent crude.
I think the world is happy to take it's chances...
The longer oil remains at $50 now, the higher the price will eventually spike to. The minister is probably right. At $80, exploration is profitable enough to keep production on pace with demand, but not so profitable that another glut is created.