Opec sees $70-$90 as floor for oil prices

Algiers: Opec producers see oil prices bottoming at $70-$90 per barrel, Opec President Chakib Khelil was quoted as saying in yesterday's edition of Algerian daily El Watan.

The comments come before the Organisation of Petroleum Exporting Countries holds an emergency meeting on October 24 in Vienna to discuss the impact of economic weakness on oil markets.

"Normally, Opec has no price target. The market decides on prices. But people say that the bottom price, the bottom cost below which we can not step down, is between $70 and $90 per barrel," El Watan quoted Khelil as telling reporters.

He cited cases of Canada and Brazil, where oil could not be pumped if prices were to fall below $70 per barrel.

Khelil, who is also Algeria's energy and mining minister, added: "It is obvious that to ensure market balance, supplies must be reduced.

"I cannot tell you now what the level would be. We have to meet and decide. I can not give an answer, the answer will come from the Opec meeting."