OPEC wants oil to reach $70: Abdallah EL Badri

: OPEC wants to see oil prices rising to more than $70 a barrel, the oil cartel's secretary general Abdallah El-Badri said yesterday. “The price of $50 is not enough to cover investment costs for the future,” El-Badri told reporters in Algiers. “The price which allows reasonable and acceptable revenues is more than $70 a barrel,” he added. El-Badri was speaking after talks with Energy Minister Chakib Khelil ahead of the next meeting of the Organization of Petroleum Exporting Countries in Vienna on May 28.

• It now says production will drop by 1.6 percent, or 1.37 million barrels a day, down to 84.18 mbd. Its previous report in March forecast a drop of 1.01 million barrels a day to 85.55 mpd. The IEA, in its latest forecast earlier this month, cut oil consumption by 1.0 million barrels a day for 2009 to 83.4 million barrels, citing the weak global economy as a factor.

  OPEC countries still had another 700,000 barrels a day to take out of production for the cuts agreed at the last OPEC meeting at Oran in December — 2.2 million barrels a day-to be 95-percent applied, said El-Badri. “OPEC wants a balance between the supply and demand and acceptable prices,” he added. Khelil stressed that any decision OPEC made at the May meeting would “depend on changing supply and demand, the level of stocks-all that will be analyzed” in relation to the current crisis.

  If there is an economic recovery, we will need to cut back,” he added. Oil prices jumped above 51 dollars a barrel on Friday, as a flagging US dollar and rising stock markets offset concerns about weak demand arising from the global economic downturn. New York’s main futures contract, light sweet crude for June, gained $1.93 to close at $51.55 per barrel. In its April monthly bulletin, the cartel revised down its estimate for world crude demand this year and predicted that a “devastating contraction” in c
  onsumption would keep prices under pressure in the months ahead.