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:

REUTERS EXCLUSIVE

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Jim O’Neill Interview

Jim O’Neill Interview

'India can become world’s fifth-largest economy by decade’s end'  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Bharti-China Mobile

Bharti-China Mobile

Bharti Airtel, China Mobile to collaborate on 4G  Full Article 

Suzlon Energy

Suzlon Energy

Suzlon expects to turn profitable in fiscal 2016: chairman   Full Article 

Eicher Motors Stake

Eicher Motors Stake

Volvo selling up to $300 mln worth of Eicher shares  Full Article 

Rich List

Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

Tough Task

Tough Task

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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