Tuesday, 25 September 2012

Gulf OPEC members want Brent oil at $100/barrel

Gulf members of the Organization of Petroleum Exporting Countries, led by Saudi Arabia, would like to see oil prices stabilize around $100 a barrel as high prices could slow down economic growth and hit demand. The price of a barrel of Brent--the most widely used benchmark globally--rose near $117 a barrel mid-September and has remained above $100.
Saudi oil minister Ali al-Naimi said that the world's top oil exporter is concerned about oil price levels given that they are not being caused by supply shortages and that the Gulf state will take all necessary steps to moderate them.
Mr. Naimi has previously said he considered $100 a barrel to be the ideal price for Brent to balance the needs of consumers and producers. He stressed that the Arab world's largest economy will continue to work with other Gulf countries and OPEC to defend the stability of the oil market.
High Saudi output helps keep oil prices down, benefiting fragile economies in the U.S. and Europe, which rely on the kingdom to keep up supply as they implement sanctions intended to press Iran over its nuclear program.

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