Opec chief sees oil at $80-110

Chakib Khalil says the group is under "big pressures" from consuming nations.

    OPEC ministers have left oil output unchanged despite calls from consuming nations [AFP]

    "Prices will continue to be high, and the prices for the rest of the year will be between $80 and $110," Khalil said.
     
    "There are big pressures on Opec and some consuming nations would like to present Opec as being behind current high prices."
     
    At a meeting in Vienna earlier this month, Opec decided to keep its output steady despite calls from consuming countries for it to be increased in order to halt high prices.
     
    Soaring prices
     
    Oil and other commodities have struck a series of record highs since the beginning of the year as investors fled stock markets and took refuge in dollar-denominated assets.
     
    But US oil prices have eased since hitting a record $111.80 a barrel on Monday as signs of an economic slowdown mount.
     
    This has raised the possibility of a slowdown in world demand for commodities.
     
    No Opec role
     
    Khalil has previously said that Opec has not played a role in rising oil prices in recent months but instead the market is responding to US economic problems and the falling US dollar.
     
    "The truth is that the current prices are linked to the US economic problems as well as to the value of the dollar."
     
    He said Algeria's oil and gas sector would continue to do business in the US dollar.
     
    "We will continue to work with the currency of the international market," he said, referring to the dollar.

    SOURCE: Agencies


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