Current oil price not harmful to economies-Qatar

Current oil price not harmful to economies-Qatar

October 10, 2010 3:56 by Reuters

The global economy is not being harmed by oil prices at current levels, Qatar’s oil minister said on Sunday, adding that a price of between $70 a barrel and $85 was fair to producers and consumers.

“The current price is not harmful to the global economies,” Abdullah bin Hamad al-Attiyah told Reuters on the sidelines of a meeting of Gulf Arab oil ministers.

U.S. crude for November settled at $82.66 a barrel on Friday, having gained 1.32 percent on the week.

On Saturday United Arab Emirates Oil Minister Mohammed al-Hamli said there was still some oversupply in the market and he was unconcerned with oil prices above $80.

The oil price has stayed within a range of around $70-$85 a barrel for the past year — judged by many in OPEC to be high enough for producers who need to invest and low enough not to damage the world’s economy.

Oil ministers from the Gulf Cooperation Council were meeting in Kuwait ahead of an Oct. 14 meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna.

OPEC has not officially changed production policy since December 2008 when it responded to a price crash and a recession with its deepest ever supply cut.

(Reporting by Ahmed Hagagy; Writing by Amran Abocar; Editing by Greg Mahlich)