World econ­omy can with­stand $100 bar­rel oil price: Kuwait

The Pak Banker - - I Nternational -

CAIRO: The global econ­omy can with­stand an oil price of $100 a bar­rel, Kuwait's oil min­is­ter said on Satur­day, as other ex­porters in­di­cated OPEC may de­cide against in­creas­ing out­put through 2011 as the mar­ket was well supplied.

An­a­lysts have said oil pro­duc­ing coun­tries are likely to raise out­put af­ter crude ral­lied more than 30 per­cent from a low in May be­cause they fear prices could dam­age eco­nomic growth in fuel im­port­ing coun­tries.

Euro­pean bench­mark ICE Brent crude for Fe­bru­ary closed at $93.46 on Fri­day af­ter hit­ting $94.74 a bar­rel, its high­est level since Oc­to­ber 2008.

Arab oil ex­porters meet­ing in Cairo this week­end said they saw no need to sup­ply more crude as stocks were high and prices had been in­flated tem­po­rar­ily by cold weather in Europe.

Asked by Reuters if the world econ­omy could stand a $100 oil price, Kuwaiti Oil Min­is­ter Sheikh Ah­mad alAb­dul­lah al-Sabah said: "Yes it can."

Iraq's new oil min­is­ter and the head of Libya's Na­tional Oil Cor­po­ra­tion both told Reuters that $100 was a fair price, while Qatar's Min­is­ter Ab­dul­lah al-At­tiyah said he did not ex­pect OPEC to in­crease pro­duc­tion in 2011.

"I do not ex­pect an OPEC meet­ing be­fore June be­cause oil prices are sta­ble," he said.

Some del­e­gates even called for ex­porters to com­ply bet­ter with agreed pro­duc­tion lim­its. OPEC mem­bers' com­pli­ance with promised cut­backs reached 56 per­cent in Novem­ber, ac­cord­ing to Reuters es­ti­mates.

When asked if out­put could be raised, Kuwait's Sheikh Ah­mad said: "No. More com­pli­ance, more com­pli­ance." -Afp

CAIRO: Ab­bas Naqi, sec­re­tary gen­eral of Or­gan­i­sa­tion of Arab Petroleum Ex­port­ing Coun­tries (OAPEC), speaks to the me­dia be­fore the start of meet­ing in Cairo. The global econ­omy can with­stand an oil price of $100 a bar­rel, Kuwait's oil min­is­ter said, as other ex­porters in­di­cated OPEC may de­cide against in­creas­ing out­put through 2011 as the mar­ket was well supplied. -Reuters

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