OPEC hoping for $17/barrel by November vs $14.50 today. IMO, $17 is still a reasonable price for crude:
Kuwait says $17 a barrel realistic target for crude
By Ashraf Fouad
KUWAIT (Reuters) - Kuwaiti Oil Minister Sheik Saud Nasser
al-Sabah said Tuesday that he saw $17 a barrel as a realistic
target price for benchmark Brent crude oil
Speaking to reporters at the airport on the arrival of Algerian Oil
Minister Youssef Yousfi for talks on the market, Saud said "($17)
is a realistic figure and, God permitting, we are expecting to
achieve it in November."
Brent November futures Tuesday traded at $14.15 a barrel.
Kuwait, which is eager to send the market a strong signal that oil
producers are still gunning for a higher oil price, on Wednesday
will host talks between influential OPEC countries and
independent oil producer Oman.
When asked of the possibility of a third round of oil production
cuts, Saud said "all options are open in front of OPEC's Nov. 25
ministerial meeting. ... We don't want to precede events."
He said earlier the Organization of the Petroleum Exporting
Countries must be prepared for a third round of oil production
cuts if Brent did not reach $17 a barrel by the end of November.
Saud said a second round of oil talks in Kuwait on Wednesday
"were aimed at stabilizing the market and improving the price. ...
We are closely watching the market until we reach the acceptable
price ... and the extent of compliance by pledged cuts, which has
been large, by all countries."
Yousfi said the Kuwait meeting was aimed at analyzing the market
in view of cuts implemented by OPEC and independent oil
exporters "and how we can increase and boost efforts to reach
better balance between supply and demand."
Saud had extended an open invitation to OPEC and non-OPEC
states to come to the Persian Gulf country to discuss measures
needed to boost oil prices.
The oil ministers of Oman, United Arab Emirates and Iran are all
due to arrive in Kuwait on Wednesday for an official round of
five-way talks.
Wednesday's meeting follows similar talks last week which were
attended by OPEC heavyweight Saudi Arabia and fellow member
Qatar.
Saud hoped a meeting scheduled for Oct. 2 of the oil ministers of
Saudi Arabia, Venezuela and non-OPEC Mexico would "reach
positive results in this direction. ... All options aimed at improving
the price are open."
Mexican Oil Minister Luis Tellez and his Venezuelan counterpart
have said the talks would not result in more cuts.
Saud said the Kuwait initiative and additional rounds of talks in
the Persian Gulf country "are continuing until November ... as long
as it takes for prices to improve."
Wednesday's talks bring together OPEC states with a total
OPEC quota of more than 8 million barrels per day (bpd) -- Iran
with 3.318 million bpd, United Arab Emirates 2.157 million bpd,
Kuwait 1.98 million bpd and Algeria 788,000 bpd.
Non-OPEC Oman, with production at around 910,000 bpd, said
earlier this month it was willing to discuss a third round of output
cuts. |
