Oil prices above $120 ‘abnormal’: OPEC

July 29th, 2008 - 7:23 pm ICT by IANS  

Jakarta, July 29 (DPA) Crude oil prices above $120 a barrel are “abnormal” but they could fall to around $78 under the right circumstances, the president of the Organization of the Petroleum Exporting Countries (OPEC) said Tuesday. “If the dollar continues to strengthen and the political situation improves, then the long-term prices will be about $78,” Chakib Khelil, on a visit to Indonesia, said here.

He added that the market was well-supplied with oil, refuting arguments that there is a world shortage of the commodity and members of the OPEC should increase production.

“There’s a balance in the market,” Khelil said. “I would say (oil) stocks are at a good level, and there hasn’t been any disruption in demand.”

He added that he did not believe OPEC members should cut production if oil prices continued to fall.

During his visit, Khelil also urged Indonesia to remain a member of the cartel even though it had seen its oil production fall and has become an oil importer.

Indonesian Energy Minister Purnomo Yusgiantoro said Indonesia would quit OPEC after Dec 31.

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in World |