Oil may touch $170, says OPEC
The president of Opec, Algerian energy minister Chakib Khelil, on Thursday forecast that oil prices could rise to $150-170 a barrel during the northern hemisphere summer.
By Agencies |
PARIS: The president of Opec, Algerian energy minister Chakib Khelil, on Thursday forecast that oil prices could rise to $150-170 a barrel during the northern hemisphere summer. "If there is real demand for extra oil, the Organisation of Petroleum Exporting Countries (Opec) will do what was needed to satisfy it," he said, affirming that there was enough oil in the world for about the next 50 years. "I predict probably prices of $150-170 this summer. It (the market) will probably fall a bit towards the end of the year," he said.
Khelil said he did not expect prices to hit $200 a barrel, barring a major market crisis such as a halt in production in Iran. In that case, he added, prices could possibly surge to "200, 300, 400 dollars." He said, "everything depends on the European Central Bank (ECB) and a decision it could take to raise eurozone interest rates."
"At that time, I think the price of oil will increase." ECB policymakers are to meet on July 3 when many analysts predict they will decide to raise their benchmark rate to 4.25% in the face of rising inflationary pressure. A strong euro, and a weaker dollar, would drive up demand for oil, which is marketed in the US unit and becomes cheaper for holders of non-dollar currencies.
Khelil said he did not expect prices to hit $200 a barrel, barring a major market crisis such as a halt in production in Iran. In that case, he added, prices could possibly surge to "200, 300, 400 dollars." He said, "everything depends on the European Central Bank (ECB) and a decision it could take to raise eurozone interest rates."
"At that time, I think the price of oil will increase." ECB policymakers are to meet on July 3 when many analysts predict they will decide to raise their benchmark rate to 4.25% in the face of rising inflationary pressure. A strong euro, and a weaker dollar, would drive up demand for oil, which is marketed in the US unit and becomes cheaper for holders of non-dollar currencies.
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