KUWAIT CITY – Secretary general of OPEC Abdullah El-Badri said on Monday that oil producers are “concerned” at high crude prices and added that markets are adequately supplied.
“The (high) oil price is a concern. We see that there is a $15-20 premium risk at this time,” Badri told reporters when asked if OPEC was concerned about soaring crude prices.
He was speaking ahead of a roundtable meeting for Asian energy ministers who are expected to discuss the impact of oil prices on the economy.
Oil dipped in Asian trade Monday as traders locked in profits after gains last week.
New York’s main contract, light sweet crude for delivery in May fell 70 cents to $108.96 a barrel.
Brent North Sea crude for June eased 42 cents to $123.03.
The head of the International Energy Agency (IEA), Nobua Tanaka, said on Sunday that current oil prices were “very high” and that the consumers’ agency was alarmed that this could undermine economic growth and crude demand.
“Certainly current oil prices are very high… (we are) alarmed about that it could negatively impact the economic growth,” Tanaka told reporters in Kuwait as he arrived for the meeting.
“High price is pressuring down the growth rate of oil demand,” said Tanaka, citing the examples of the world’s leading consumers the United States and China where demand for oil has dropped.
“If the economy is really falling, the price will fall, just like what happened in 2008,” he said.
Badri called for introducing “some regulations” to curb speculation and the reduction of taxes on oil products in order to bring down high petroleum prices.
He also said the market was “adequately” supplied and that there was no need to boost output because there are no buyers.
“The market is adequately supplied and our (OPEC) production in March was almost the same as in December even though a member country is out of production,” Badri said in reference to Libya.
