Speaking out: Algerian Energy and Mines Minister Chakib Khelil
‘Oil must reach $90 to stabilise market’
The global oil market could stabilise if crude prices rise to around $90 a barrel and that is likely to happen in the second half of 2010, Algerian Energy & Mines Minister Chakib Khelil said.
"A price which ensures the stability of the oil market must evolve around $90 a barrel. It should be reached between the middle and the end of 2010," Algerian official news agency APS quoted him as saying.
Khelil attributed current oil price of around $72 a barrel to factors such as falls in stocks, the International Energy Agency's decision to raise its world demand forecast and a rise in US fuel consumption.
He also cited expectations of an economic rebound in China and the US and good compliance by Opec members with the latest output cut.
But Khelil said prices could slip to between $65 and $70 for the rest of the year.
"I do not think prices will continue to increase. They may stabilise or perhaps fall to $65 or $70 a barrel," Reuters quote him as saying.