INTERVIEW - Oil over $100 damaging, OPEC would act - Kuwait

KUWAIT Sun Apr 25, 2010 7:53pm IST

A motorist prepares to put fuel into her car at a petrol station in Melbourne July 3, 2008. REUTERS/Mick Tsikas/Files

A motorist prepares to put fuel into her car at a petrol station in Melbourne July 3, 2008.

Credit: Reuters/Mick Tsikas/Files

Related Topics

KUWAIT (Reuters) - OPEC would pump more oil to prevent a rally in oil prices above $100 from hurting the global economic recovery, Kuwait's oil minister said on Sunday.

Oil is well below the $100 a barrel mark, settling at just over $85 a barrel on Friday. For a month, oil has traded over the $70 to $80 level that many in OPEC have pegged as fair. But there was room for more upside before the producer group would respond, Sheikh Ahmad al-Abdullah al-Sabah told Reuters in an interview at a media event.

"If it's sustained above $100 that would damage the economic recovery," he said. When asked if OPEC would boost supply to prevent that, he replied "I would say so."

Current oil prices were acceptable to both producers and consumers, he said.

The oil market was oversupplied, but Kuwait had seen a sudden, surprising surge in demand from Asia that was absorbing some of the surplus, he said.

"I was surprised a little bit, to see a sudden surge," he said. "I was expecting to see the demand, but not at the same pace as we've seen lately."

The whole of Kuwait was sat on more oil than previously thought, not just the Burgan oilfield, Sheikh Ahmad said. He declined to give more details

Last week, a Kuwaiti official said Greater Burgan, the world's second-largest oilfield, was bigger than past estimates had indicated. (Reporting by Simon Webb and Eman Goma)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

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