Kuwait opposes high oil price
Tuesday, 2 June 2009
KUWAIT CITY, June 1 (AFP): Kuwait's Oil Minister Sheikh Ahmad Abdullah al-Sabah said yesterday the OPEC member does not favour a high price for oil because this would dampen the global economy.
"We are not in favour to see the prices in the hundreds (of dollars a barrel) because this will fuel recession again," the minister told reporters outside parliament.
He said Kuwait, the fourth largest Organisation of Petroleum Exporting Countries producer, is happy with OPEC's decision to keep production unchanged and ruled out any output cut when the organisation meets again in September.
Asked about the recent increase in oil prices, Sheikh Ahmad said: "The market is reacting to sentiment rather than fundamentals. There is a lot of supply but the prices are rising."
The minister expects prices to increase to around 70 dollars a barrel as winter appoaches. "We are approaching winter and definitely demand will increase."
Last July oil prices surged above 147 dollars a barrel before plunging to barely 32 dollars in December.
Continuing their recent recovery, prices shot back above 66 dollars a barrel on Friday on further signs of economic recovery and a weakening of the US currency.
New York's main futures contract, light sweet crude for delivery in July ended at 66.31 dollars, while Brent North Sea closed at 65.52 dollars.
"We are not in favour to see the prices in the hundreds (of dollars a barrel) because this will fuel recession again," the minister told reporters outside parliament.
He said Kuwait, the fourth largest Organisation of Petroleum Exporting Countries producer, is happy with OPEC's decision to keep production unchanged and ruled out any output cut when the organisation meets again in September.
Asked about the recent increase in oil prices, Sheikh Ahmad said: "The market is reacting to sentiment rather than fundamentals. There is a lot of supply but the prices are rising."
The minister expects prices to increase to around 70 dollars a barrel as winter appoaches. "We are approaching winter and definitely demand will increase."
Last July oil prices surged above 147 dollars a barrel before plunging to barely 32 dollars in December.
Continuing their recent recovery, prices shot back above 66 dollars a barrel on Friday on further signs of economic recovery and a weakening of the US currency.
New York's main futures contract, light sweet crude for delivery in July ended at 66.31 dollars, while Brent North Sea closed at 65.52 dollars.