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Saudi Arabia’s Al-Naimi Says Oil Price Is ‘Perfect’ (Update1)

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05/Dec/2009
Bloomberg

Saudi Arabian Oil Minister Ali al- Naimi said the current oil-price level is “perfect” and in “the right range.”

“The market is stable right now, volatility is at minimum, everybody is happy with the price, it is in the right range, there is nothing to worry about,” he told reporters in Cairo today, where he is attending an annual meeting of Arab oil ministers. There is no need to reduce inventory levels, he said.

Crude oil futures for January delivery fell 99 cents yesterday to close at $75.47 a barrel on the New York Mercantile Exchange. Prices have risen 69 percent this year, recovering from a low of $32.40 a barrel in December 2008. The Organization of Petroleum Exporting Countries announced that month a record production cut as demand around the world crumpled, and kept quotas unchanged at three subsequent meetings this year.

Officials from Kuwait, Algeria, Libya and Qatar said during the past two days that OPEC should maintain current production targets when it meets next on Dec. 22 in Luanda, Angola.

 
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