Iraq too...
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 al-Abdullah 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."
The Cairo meeting of the Organization of Arab Exporting Countries (OAPEC) brought together Arab members of OPEC including top exporter Saudi Arabia, which has traditionally been viewed as a price moderate, as well as non-OPEC countries Tunisia, Egypt, Syria and Bahrain.
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OPEC cut output drastically after the global financial crisis struck in 2008 to prop up collapsing oil prices.
As demand has risen steeply in 2010 and is expected to rise further in 2011, the market is watching closely whether OPEC can release at least some of its spare capacity to prevent prices from soaring to around $150 per barrel as they did before the crisis struck in summer 2008.
OPEC's most influential oil minister, Saudi Arabia's Ali al-Naimi, said on Friday he was still happy with an oil price of $70-80 a barrel and there was no need for an extra OPEC meeting before the next scheduled one in June.
Others in the group have been pressing for a higher price, arguing that quan ative easing and a weakened U.S. dollar that spurred gains across financial markets mean the oil price strength is partly nominal.
Egyptian Oil Minister Sameh Fahmy said the current increase in oil prices was the result of higher demand on heating fuel because of the cold weather in Europe.
United Arab Emirates Oil Minister Mohammed al-Hamli said crude oil inventories are "quite high. It's the highest over the five years average... The market is well supplied."
Suck it ElNono.
This isn't about "drill baby drill" like the other thread.
This is about those ungrateful bas s and what the we care about "liberating" those ungrateful suckers.
What did you expect? With few exceptions, they're not greatful now and they never were. What a great investment.
I agree. I had no expectations. those assholes.
http://www.dawn.com/2011/01/15/world...milestone.htmlOIL: London Brent oil surged to $99.20 a barrel late on Friday – touching the highest level since October 1, 2008 – and encroaching on the key psychological milestone of $100.
So basically, Kuwait can suck it for pointing out we can handle oil prices right where they are right now. What ingrates.
If oil hits $150/bbl next year, we'll wish we could lock it in at $100.
Please do Kuwait. Keep those oil prices high. It's only going to force countries to pursue alternative fuel sources other than oil that much quicker.
@CC:
Has the outrage been simmering the whole time or did you just recently get pissed about this?
You waited until a rather late date to register your disapproval here, it would seem.
The difference between current prices and $100 is less than one dollar. Just saying.
Its not like we went to Kuwait to save Kuwait anyway. We went to save Saudi Arabia (hence knocking over the Bin Laden domino) in order to protect our supply of oil. They benefited from our self interest. You guys advocate the US staying on top of the pile all day long here and you don't think other countries want a piece of the pie too?
LOL -- the GDP of the entire Arab world is about the same as the GDP of Spain.
I'm just glad we get most of our oil from Mexico and Canada.
At least you could make sure these money will not be spent against the US.
Donald Trump 12' baby! He don't play that . America bout' to get paid son!
Petroleum should be taxed in this country to a level of off-setting the costs of our military expenses incurred in securing the oil. When it appears that green energy sources are inefficient because they require subsidies that is only because they are being compared to petroleum which is even more subsidized when the costs of military expenses and health/environmental damages are calculated.
A quick calculation indicated cost of the current Iraq war applied to gas would add about $2 to a gallon. Maybe the gas companies could also hand out free yellow ribbons.
Uh, the war for oil meme was dropped when we didn't take control of Iraq's oil reserves as was the charge back during the Bush Administration.
You must of missed the memo. I understand; there were, after all, a lot of liberal narratives being thrown at the wall to see what would stick.
America has, does, and will any country to advance its corporate profits, but, other countries can't us back?
America is "exceptional" in its inalienable right to any country and not get ed back?
Why should Kuwait "Sell American" cheaper than it sells oil to any other country?
Kuwait doesn't set the world's oil price.
btw, US domestic oil and coal is exported to foreign countries.
Should US oilcos sell US-sourced oil cheaper to US consumers? Those oilcos don't "owe" US market a cheaper price?
Glass them...........and send boutons there as well.
Bas s didn't show the proper level of respect and appreciation for being the subjects of decades worth of our meddling due to a selfish interest in what's under all that sand.
How dare they?
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