Is Oil heading towards $90/barrel?

Algeria’s new Energy and Mines Minister Youcef Yousfi said that pricing between $90-$100 per barrel was a reasonable price for oil. “Current oil prices are better than their level in the past years but a price ranging between $90 and $100 per barrel would be reasonable,” Yousfi said. When asked by reporters whether OPEC would decide to cut output at the meeting in Vienna, Yousfi said: “We will discuss the market situation. The final decision will depend on all the member states.”

On the other hand, Ali Al Naimi, Oil Minister for the cartel’s largest producer Saudi Arabia, said that an oil price between $70 and $80 a barrel is “ideal.” Al Naimi said that he was comfortable with economic growth and that the market was very “well balanced.”

Crude prices closed on October 11 on NYMEX at $82.21.