Oil prices may fall to $70 if dollar toughens, Iran crisis softens, says OPEC chief Shakib Khalil

www.chinaview.cn 2008-07-27 10:10:34

　ALGIERS, July 26 (Xinhua) --

Oil should be trading at between about 70 U.S. dollars to 80 dollars per barrel if the dollar strengthens and the Iranian nuclear crisis is defused, Shakib Khalil (Chakib Khelil in French), rotating president of the Organization of the Petroleum Exporting Countries (OPEC), said here Saturday.

He made the prediction in his brief remarks to reporters, noting "there could be volatility ... but normally long-term oil prices should move in that lower direction without the interference of geopolitics or of the U.S. monetary policy."

He said the recent meeting between senior U.S. diplomat William Burns and Iran's chief nuclear negotiator Saeed Jalili in Geneva and the strengthening of dollar were the main factors that helped push the oil prices down rather than changes in supply and demand.

"I do not see a fall in demand ... (and) supply is the same," said Khelil who is also Algeria's Minister of Energy and Mines.

The OPEC head also voiced dissatisfaction with some European countries' insistence on promoting bio-ethanol energy.

Oil prices for September delivery fell to 123.26 dollars per barrel on the New York Mercantile Exchange and to 124.52 per barrel on the ICE Futures exchange in London on Friday, the lowest in seven weeks.

Oil prices slide below 124 USD on falling fuel demand

www.chinaview.cn 2008-07-26 05:24:59

NEW YORK, July 25 (Xinhua) --

Crude oil resumed its slide and settled below 124 U.S. dollars Friday on falling fuel demand caused by a slow economy and supply increase from the OPEC countries.

Light, sweet crude for September delivery dropped 2.23 dollars to settle at 123.26 dollars a barrel on the New York Mercantile Exchange. Futures touched 122.50 dollars a barrel during the trading session, the lowest intraday price since June 5. Price has tumbled more than 24 dollars since the all-time peak of 147.27 dollars a barrel was achieved on July 11.

The U.S. Energy Department's report this week showed that the U.S. domestic fuel demand dropped to a lowest point since January 2007 with average 19.9 million barrels a day, signaling that the weak economy and high energy prices have curbed demand.

The OPEC will produce 32.9 million barrels a day in July, 200,000 barrels up from June, according to the preliminary estimates from an oil industry consultancy Petro Logistics Ltd.

The dollar strengthened against the euro on Friday also helped to bring down the crude oil price.

In London, Brent crude for September delivery fell 1.92 dollars to settle at 124.52 dollars a barrel on the ICE Futures Exchange.

Editor: Mu Xuequan

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