Oil unlikely to fall to $65 - senior OPEC delegate

DOHA Sun May 9, 2010 4:30pm IST

A man waits next to his car at a gas station after concerns of petrol shortages led to panic buying in Athens February 16, 2010. REUTERS/Yiorgos Karahalis

A man waits next to his car at a gas station after concerns of petrol shortages led to panic buying in Athens February 16, 2010.

Credit: Reuters/Yiorgos Karahalis

Related Topics

A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

DOHA (Reuters) - The impact from the Greek debt crisis will be "limited" and oil prices are unlikely to fall below $65 a barrel, a senior OPEC delegate from the Gulf Arab region said on Sunday.

Oil at below $65 a barrel would be too low to encourage production from marginal oil fields where extraction is difficult, the delegate said on the sidelines of an energy conference in Qatar.

"I don't expect the price to go to $65," the delegate said.

"The economic crisis in Europe will be limited and contained."

U.S. crude oil futures settled at $75.11 a barrel on Friday, posting their largest weekly loss in almost a year and a half, as worries grew that the euro zone's debt crisis might derail the global economic recovery.

Crude also hit its lowest level since Feb. 16th on Friday at $74.51, after going over $87 a barrel early in the week.

The oil price was still in the middle of the $70-$80 range that top oil exporter Saudi Arabia has said was fair to producers and consumers.

Kuwait's oil minister said on Saturday $65 would prompt OPEC action, although other OPEC nations played down the sharp fall in prices.

OPEC is not scheduled to meet formally until October and has kept oil supply targets steady since late 2008.

The Doha conference from Sunday until Wednesday is not an OPEC gathering, but oil ministers will probably hold informal meetings on the sidelines of the event.

Ministers from OPEC members including Saudi Arabia, Qatar, Kuwait, Algeria and the UAE are in attendance.

(Reporting by Simon Webb; Writing by Raissa Kasolowsky; Editing by Erica Billingham)

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

REUTERS SHOWCASE

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Reuters India Mobile

Reuters India Mobile

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