Brent oil futures open the week’s trading session flat at $107 a barrel as comments from the Saudi Arabia and the IEA suggest that the current price of oil represents a threat to any global recovery.
Latest Brent Oil Price
In London, Brent crude oil futures for January 2012 delivery was trading at $107.47 a barrel, 07.45 GMT this morning on the ICE Futures Exchange.
Oil Market Well Balanced
The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, but it was too early to comment on what action OPEC may take when it meets in Vienna in December.
Saudi Arabia, Kuwait and the UAE have raised their oil production over the last few months to compensate for the loss of Libyan supplies and prevent high prices dampening economic growth after failing to convince OPEC to lift its production target in June.
When asked whether he shared the UAE oil minister’s view that prices of $80 to $100 a barrel are “reasonable”, Naimi said crude prices are determined by the market and that Saudi Arabia accepted them.
Meanwhile, the head of the IEA said stubbornly high oil prices could harm economic growth.
“Prices are still quite high. If oil prices are high on this level for a longer period it will have an impact on economic recovery, especially in developing countries.” IEA director Maria van der Hoeven told reporters at an energy conference in Saudi Arabia.
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Brent oil price opens flat at $107, IEA warns on impact to recovery
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