ID :
40701
Wed, 01/14/2009 - 18:57
Auther :
Shortlink :
http://m.oananews.org//node/40701
The shortlink copeid
USD 70 a barrel ideal price for crude: Qatar By Ammar Zaidi
New Delhi, Jan 14 (PTI) Oil cartel OPEC's key producer
Qatar Wednesday made a strong case for USD 70 a barrel price
of crude to attract investments in capacity creation for
meeting future energy demands.
International crude prices, which rose to a historic high
of over USD 147 a barrel in July last year, have slumped to
four-year low of around USD 37 per barrel, prompting fears
that companies may not invest in new fields.
"I am against very high oil prices and (I) also do not
appreciate low oil prices. Low oil prices result in freeze in
investments in creating new resources," Qatari Oil Minister
Abdullah bin Hamad al-Attiyah told PTI in an interview here.
Several oil companies have put on hold investments in
small and marginal fields and in difficult and frontier areas
following the sharp dip in prices as current rates give a
negative rate of return on the huge investments required.
"USD 70 a barrel price will give companies and oil
producers incentive to invest more. (Prices) below that are a
matter of concern," he said. "Low oil prices result in freeze
in investment in new resources and when growth comes back, we
will have another oil shock because there will be not enough
resources to meet the demand."
He, however, strongly disfavoured the idea of crude
prices going above USD 100 per barrel which impact economic
growth worldwide. The Qatari Oil Minister said he expected
crude oil prices to remain weak for the rest of the 2009
calendar year due to the global economic crisis and recession
in major economies.
"But I am pragmatic. This is a cycle and oil prices will
move up," he said. There is no shortage of supplies in the
market but there is no demand for oil because of world
economic crisis.
The slowdown in demand had forced OPEC, which supplies
more than 40 percent of the worlds oil, to slash production
by 9 percent to revive prices. Qatar, he said, was producing
7,35,000 barrels per day and had a spare capacity of 9,00,000
bpd.
He said the Organisation of Petroleum Exporting Countries
(OPEC) does not need to cut output again so far and no
emergency meeting is planned before the cartel to meet in
Vienna on March 15.
He said 2009 would be a very difficult year.
What we are witnessing is the worst economic crisis of
modern history, he said hoping 2010 would see revival of
economies and demand for oil picking up. PTI ANZ
AM
Qatar Wednesday made a strong case for USD 70 a barrel price
of crude to attract investments in capacity creation for
meeting future energy demands.
International crude prices, which rose to a historic high
of over USD 147 a barrel in July last year, have slumped to
four-year low of around USD 37 per barrel, prompting fears
that companies may not invest in new fields.
"I am against very high oil prices and (I) also do not
appreciate low oil prices. Low oil prices result in freeze in
investments in creating new resources," Qatari Oil Minister
Abdullah bin Hamad al-Attiyah told PTI in an interview here.
Several oil companies have put on hold investments in
small and marginal fields and in difficult and frontier areas
following the sharp dip in prices as current rates give a
negative rate of return on the huge investments required.
"USD 70 a barrel price will give companies and oil
producers incentive to invest more. (Prices) below that are a
matter of concern," he said. "Low oil prices result in freeze
in investment in new resources and when growth comes back, we
will have another oil shock because there will be not enough
resources to meet the demand."
He, however, strongly disfavoured the idea of crude
prices going above USD 100 per barrel which impact economic
growth worldwide. The Qatari Oil Minister said he expected
crude oil prices to remain weak for the rest of the 2009
calendar year due to the global economic crisis and recession
in major economies.
"But I am pragmatic. This is a cycle and oil prices will
move up," he said. There is no shortage of supplies in the
market but there is no demand for oil because of world
economic crisis.
The slowdown in demand had forced OPEC, which supplies
more than 40 percent of the worlds oil, to slash production
by 9 percent to revive prices. Qatar, he said, was producing
7,35,000 barrels per day and had a spare capacity of 9,00,000
bpd.
He said the Organisation of Petroleum Exporting Countries
(OPEC) does not need to cut output again so far and no
emergency meeting is planned before the cartel to meet in
Vienna on March 15.
He said 2009 would be a very difficult year.
What we are witnessing is the worst economic crisis of
modern history, he said hoping 2010 would see revival of
economies and demand for oil picking up. PTI ANZ
AM
