OPEC sees $70-$90 as floor for oil prices - paper

ALGIERS Sat Oct 18, 2008 5:06pm IST

Algerian Oil Minister and OPEC President Chakib Khelil arrives for a news conference in Vienna in this September 10, 2008 file photo. REUTERS/Heinz-Peter Bader

Algerian Oil Minister and OPEC President Chakib Khelil arrives for a news conference in Vienna in this September 10, 2008 file photo.

Credit: Reuters/Heinz-Peter Bader

Related Topics

Border Security Force (BSF) soldiers ride their camels as they rehearse for the "Beating the Retreat" ceremony in New Delhi January 27, 2015. REUTERS/Ahmad Masood

"Beating The Retreat" Rehearsals

Rehearsals are on for "Beating the Retreat" ceremony which symbolises retreat after a day on the battlefield, and marks the official end of the Republic Day celebrations.  Slideshow 

ALGIERS (Reuters) - OPEC oil producers see oil prices bottoming at $70-$90 per barrel, OPEC President Chakib Khelil was quoted as saying in Saturday's edition of Algerian daily El Watan.

The comments come before the Organization of the Petroleum Exporting Countries holds an emergency meeting on Oct. 24 in Vienna to discuss the impact of economic weakness on oil markets.

"Normally, OPEC has no price target. The market decides on prices. But people say that the bottom price, the bottom cost below which we can not step down, is between $70 and $90 per barrel," El Watan quoted Khelil as telling reporters.

He cited cases of Canada and Brazil, where oil could not pumped if prices were to fall below $70 per barrel.

Khelil, who is also Algeria's energy and mining minister, added: "It is obvious that to ensure market balance, supplies must be reduced."

"I cannot tell you now what the level would be. We have to meet and decide. I can not give an answer, the answer will come from the OPEC meeting," Khelil was quoted as saying in reply to question about how much OPEC would trim supplies.

On Friday, Khelil told Algerian state radio a "decision will be taken to lower oil supply by some OPEC members so that the oil price will not be damaged.

"This decision will not be implemented immediately because there are contracts, but will probably be implemented 40 days after it (the decision) is taken."

He did not say which countries were likely to cut supplies.

Pressure is mounting within OPEC to reduce supplies as oil prices have fallen more than 50 percent from July's record of $147.27 and expectations have grown that a global recession will erode fuel demand.

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Telecom Sector

Telecom Sector

India postpones mobile airwave auction to March 4.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 

Currencies

Currencies

China's yuan breaks into the world's top five as payment currency - SWIFT.  Full Article 

India’s Male Tenor

India’s Male Tenor

India’s lone male tenor wants to ‘Indianise’ opera  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage