$100 per barrel of crude: will hurt the global economy says Kuwait oil minster
‘Oil over $100 would hurt global economy’
An oil price above $100 a barrel would hurt the global economy, Kuwait's oil minister said today.
US crude traded above $69 today, down from an eight-month high over $73 hit on Tuesday. Optimism on global economic recovery drove a more than 40% rally in oil prices in the second quarter, the highest quarterly percentage gain since 1990.
"Hopefully in the third quarter and fourth quarter, it won't surpass $100 as this will fuel recession again," Sheikh Ahmad al-Abdullah al-Sabah told reporters in parliament.
Oil had already hit the price that Opec was looking for in the second half of the year, he said. Speculators and US dollar weakness were among the factors behind the rise, Sheikh Ahmad said.
He reiterated that Opec would not raise production at its meeting in September if there were still surplus supplies of oil on the market.
Opec has kept output targets steady this year after pledging to curb supply by 4.2 million barrels per day last year to match falling demand from a shrinking global economy.
The oil price was more than enough to meet Kuwait's budgetary needs and would generate a surplus, he said. The world's fourth-largest oil exporter relies on oil for 95% of state revenues, reported Reuters.