More OPEC oil output needed if prices hit $100 plus

OPEC member countries would need to pump more oil to prevent a rally in oil prices above $100 from hurting the global economic recovery, said Kuwait’s oil minister on Sunday.

Oil is well below the $100 a barrel mark, settling at just over $85 a barrel on Friday. For a month, oil has traded over the $70 to $80 level that many in OPEC have pegged as fair. But there was room for more upside before the producer group would respond.

“If it’s sustained above $100 that would damage the economic recovery,” he said. When asked if OPEC would boost supply to prevent that, he replied “I would say so.” said Sheikh Ahmad al-Abdullah al-Sabah.

OPEC member countries are ready to boost output if demand warranted, Sheikh Ahmad said. OPEC has kept oil supply targets unchanged since late 2008, although higher oil prices have encouraged some members to boost output informally.

Current oil prices were acceptable to both producers and consumers, he said. The oil price was reacting to movements of the dollar and sentiment about pace of economic recovery, rather than to fundamentals, he said.

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