Opec Oil price level satisfactory
Global economy can recover at current rate, even at $80 per barrel, president believes
Abu Dhabi: The international oil prices currently in the range of $75-$78 per barrel are at a "good level" and the Organisation of Petroleum Exporting Countries (Opec) is "happy" with the price range, Opec President Jose Maria Botelho de Vasconcelos said on Monday.
"It's a balanced price, not too high. The [global] economy can recover at the current price," de Vasconcelos told reporters in Abu Dhabi on the sidelines of an energy conference. Even at $80 per barrel, the oil prices are not too high, he added.
De Vasconcelos said the compliance by Opec members with their adjusted output quotas is about 65 per cent.
"We have an average compliance in Opec of about 65 per cent. Opec is happy with the compliance level ... I think so," he added.
To a question whether Opec is considering changing output quotas of member countries at its scheduled December 22 meeting in Luanda, de Vasconcelos said: "In December, we will analyse the situation and take a decision. You must wait until the meeting."
Opec cut production last year when oil prices went into a freefall following the onset of a global economic downturn. The international oil prices have been rebounding from lows of $32.40 a barrel in December.
Weakened dollar
The oil prices have been boosted by a weakening US dollar and on signs the worst of the global economic recession may have passed. At three previous meetings earlier this year, Opec left production quotas of members unchanged.
De Vasconcelos said there are currently 62 days of forward cover, implying the world oil markets are currently oversupplied and the inventories are at a higher level than Opec is comfortable with.
He said, ideally, Opec looks at a forward cover of 52 or 53 days.
De Vasconcelos said Opec member countries will put money in developing new capacity at the current level of oil prices.
He said the world oil demand may rise by 20 million barrels per day to 106 million barrels a day between 2008 and 2030. Asked if oil should continue to be priced in US dollars internationally despite the dollar's steep decline against major global currencies, de Vasconcelos said that a Opec is taking a closer look at the subject.
De Vasconcelos, who is also petroleum minister, said Angola's current oil output is 1.7 million barrels per day.
"We have some blocks under development. Our oil production may rise in the next two to three years," he added.
