Kuwait says high oil price not justified

Justification: Oil Minister Hani Hussein believes current oil prices are not justified under the supply and demand theory

REUTERS/SCANPIX

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News Wires

 12 March 2012 03:11 GMT

Kuwait's oil minister believes current world oil prices are not justified, adding that the Gulf state's current production rate will not affect its level of strategic reserves.

Fears of possible supply disruptions from Iran and political tensions across the Middle East have helped to drive up the price of benchmark Brent crude, which is trading at just under $126 a barrel, according to Reuters.

"Under the supply and demand theory, oil prices today are not justified," Oil Minister Hani Hussein said in an interview broadcast on state television over the weekend.

Many producers fear high oil prices could damage demand by crimping growth in consuming countries. Brent crude prices shot to an all-time high of over $147 a barrel shortly…

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