OPEC President - $100 Oil "Not Necessarily Very High" - AFP

[hatrack]

PARIS (AFP) - The price of 100 dollars for a barrel of crude oil is "not necessarily very high" given the high demand of oil and higher production costs, the president of OPEC said Sunday.

On Wednesday the price of a barrel of crude reached 100.09 dollars (67.85 euros) in New York, before retreating at the close to 99.18 dollars.

Algeria's Energy Minister Chakib Khelil -- who took over the rotating presidency of OPEC on January 1 -- told AFP that the current surge must be seen "in relation to the real price", that is taking into account inflation.

The current oil price was therefore below its 1980 record of "between 102 and 110 dollars depending on estimates", he said. Khelil said that high oil demand was being pushed by "China and India but also by the Middle East whose consumption has risen immensely".

EDIT

http://news.yahoo.com/s/afp/20080106/ts_afp/algeriaenergyoilopeckhelil

[lapfog_1]

1. Well, given the devaluation of the dollar, he might be right.

Euros once traded (and not that long ago) for about $1.05 / euro. So oil is at 67.85 euros a barrel, which is something like $61 / barrel (pre inflation).

So... $61 is still twice what it was when Chimp stepped in, but maybe not out of the question given increase demand and lack of huge new reserves.

[jimshoes]

2. Hey Chakib,

Blow me.