Oil Prices Comments
Oil prices at above 80 dollars a barrel are within a “very comfortable zone”, Saudi Oil Minister Ali al-Nuaimi said Monday.
“I would say we are in a very comfortable zone,” he said in answer to a question after giving a keynote speech at an energy forum in Singapore.
“I believe this zone should continue for some time and I will not predict for how long. I hope it will be longer than most people think,” said the minister, whose country is the biggest producer in the OPEC oil cartel.
New York’s main contract, light sweet crude for December delivery, was up 2.35 dollars to 83.78 dollars at around 1340 GMT.
Brent North Sea crude for December delivery rose 2.02 dollars to 85.17 dollars.
“Producers, consumers and companies are all happy with this price,” he said, adding however that the crude market is “a little bit oversupplied”.
Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah said on Sunday the price of oil is “very comfortable” despite crude having slid below 82 dollars a barrel.
Speaking to reporters on the sidelines of the second “Kuwait Financial Forum”, the minister said he expects no change in output quotas at the next meeting of the Organisation of Petroleum Exporting Countries (OPEC).
Oil prices closed Friday below 82 dollars despite new data showing a modest rise in US economic output.
New York’s main contract, light sweet crude for December delivery, fell 75 cents to close at 81.43 dollars a barrel.
In London, Brent North Sea crude for December shed 44 cents to settle at 83.15 dollars.
Global oil prices were up to $83.50 a barrel in Asian trade on Tuesday on the expectations of more oil demand as manufacturing in China and the US increased last month. Light sweet crude for December delivery was seen trading at $83.32 a barrel at 12.00 noon Singapore time while Brent crude for December settlement was at $85.32 a barrel on the London-based ICE Futures Europe exchange. Market watchers attributed oil prices upward movement OPEC’s largest oil producer Saudi Arabia’s remarks that consuming countries are happy with oil prices between $70 and $90 a barrel. They said the market was expected to trade in a tight range until Wednesday’s decision by the US Federal Reserve, which analysts widely believe will be to pump more money into the world’s biggest economy and which could spur more dollar weakness Stronger manufacturing in the world’s two biggest economies, the US and China boosted optimism that demand for crude will improve. On Monday, New York’s main contract, light sweet crude for December, soared 1.52 dollars to close at $82.95 per barrel. In London, Brent North Sea crude for delivery in December delivery jumped $1.47 to settle at $84.62 a barrel. Treasury two-year yields were near a record low on speculation the Federal Reserve will announce a new program of asset buying to boost the economy at the end of a two-day meeting starting today. The Federal Reserve will announce plans to buy at least $500 billion of long-term securities, according to economists surveyed by Bloomberg News.(QNA)