OPEC Leader: Oil back to $80-90 bbl by early 2010
This isn’t surprising. OPEC producers scaled back production some time ago in the face of a supply glut brought on by the worldwide recession. OPEC’ers are basically saying, we don’t produce more until we make up for the ridiculously cheap prices over the last year or so.
Oil prices could reach $80-$90 a barrel by early next year, but OPEC will not increase its output until a huge amount of over-supply has been absorbed, the group’s Secretary General said on Tuesday.
OPEC officials have been nudging up their price aspirations since Saudi Arabia’s oil minister said last week an oil price of around $75 could be achieved later this year and would not undermine a tentative global economic recovery.
“The price will go to $80-$90 maybe at the beginning of 2010,” OPEC’s Abdullah al-Badri told the Reuters Global Energy Summit.