No Need for More OPEC Oil - Kuwait

Reuters In, Kuwait, Jan 5, 2011 Wed 5:19 PM IST
Kuwait's oil minister said on Wednesday he considered oil at $80 to $100 a barrel to be a "fair price" and did not expect OPEC to increase output in the first half of this year.

Speaking to reporters outside the Kuwait parliament, Sheikh Ahmad al-Abdullah al-Sabah also said he did not foresee the oil producer group gathering ahead of its next scheduled meeting in June unless "something dramatic happens." He did not elaborate. [Read also my blog post here -- D.R.]

Last month, al-Sabah said that the global economy can withstand oil to be at $100 a barrel. Analysts have warned that the rallying oil price may hurt the global economy unless producing countries boost output this year.

Oil prices fell further from 27-month highs on Wednesday as a stronger dollar sapped investor risk appetite for commodities, despite signs of tighter oil supply fundamentals.

ICE Brent for February fell 50 cents to $93.03 a barrel, last month the price had spiked to $94.74 a barrel [Dec 24, 2010], its highest since Oct. 2008. Full

(Oil prices rose to a 27-month peak on Monday (Jan 3) as upbeat European and U.S. manufacturing data and forecasts for cold weather reinforced optimism about economic and energy demand growth. US crude oil for February delivery rose 17 cents to settle at $91.55 a barrel on Monday, its highest settlement since early October 2008, after earlier rising as high as $92.58. In London, ICE Brent crude for February rose nine cents to settle at $94.84 a barrel, also the highest close since October 2008. Oil prices slid on Tuesday, retreating from a 27-month high. In London, ICE Brent crude for February fell $1.31 to settle at $93.53. ICE Brent for February fell further on Wednesday -- 50 cents to $93.03 a barrel. -- See above. See also 26-month highs, last month, here -- D.R.)