Oil prices 'unlikely' to exceed USD 100 pb in 2011: Report

KUWAIT: Kuwaiti Minister of Oil and Minister of Information Sheikh Ahmad Al-Abdullah Al-Sabah ruled out the possibility of oil prices exceeding the cap of USD 100 pb in 2011.

"The prices have generally moved between USD 70 and 80 pb, which is an acceptable range for both producers and consumers in 2010," Sheikh Ahmad said here yesterday.

He made the remarks ahead of leaving for Cairo to take part in the 85th ministerial meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC).

"Though the prices touched USD 90 pb by the end of 2010, there have been general satisfaction among oil exporters and importers, given the fact that there were no unjustifiable dramatic fluctuations," the minister noted.

"The fair prices of the Organization of Petroleum Exporting Countries (OPEC) basket of 12 crudes encouraged the global cartel to maintain the level of daily output," he said.

During the 158th Extraordinary Meeting of its Conference, held in Quito, capital of Ecuador, on Dec 11, OPEC reiterated the call for its member state to abide by their respective production quotas, he said, noting that there is a considerable improvement in this regard.

Commenting on the demands of the western countries for the cartel to increase output, Sheikh Ahmad said "if the West seeks to negotiate oil prices, we seek to negotiate the prices of their exports."