Fin24

$100 a barrel 'a fair price for oil'

2012-05-08 08:27

Kuwait City - Kuwait's Oil Minister Hani Hussein said in comments published on Tuesday that $100 a barrel is a "fair" price for oil justified by market forces, but that geopolitical events were pushing the price higher.

The majority of experts are "unanimous that supply and demand fundamentals indicate that $100 a barrel is a fair price (for oil) justified by the market," Hussein told Al-Rai newspaper.

"But geopolitical events could impact the price and push it higher," the minister said.

Oil prices were mixed in Asian trade on Tuesday on fresh worries about the eurozone debt crisis after leadership changes in France and Greece underscored massive public anger over austerity measures.

New York's main contract, West Texas Intermediate (WTI) crude for delivery in June was down 13 cents at $97.81 per barrel while Brent North Sea crude for June gained 18c to $113.34 in morning trade.

The Kuwaiti minister said the oil-rich emirate's current production is 3.1 million barrels per day up from around 3.0 million bpd since September.

"Kuwait's production has steadied at 3.1 million bpd including its share from the neutral zone," shared equally with giant Opec member Saudi Arabia, the minister said. This makes Kuwait Opec's third largest producer.