Algeria Oil Price Increase
ALGERIA - Oil prices are expected to stay above $50 a barrel in coming months, but producers are watching the U.S. economy closely as the possibility of a recession there cannot be ruled out, Algeria’s energy minister said on Sunday.
Asked by reporters for his price outlook for coming months, Energy and Mines Minister Chakib Khelil replied: “I think prices will still remain above $50. The indications on the futures market are above $50 for the coming years.”
But he added: “Now everything depends on world economic growth. If there really is a recession in the U.S., at that moment demand could be affected fairly rapidly. We would find a lot of supply on the market and a lot of crude in competition.”
ยป Source: Reuters
“We cannot exclude this possibility. We count a lot on the wisdom of the chairman of the Federal Reserve to take good decisions on interest rates, as well as on the European Central Bank, to encourage economic growth.”
Khelil reiterated that OPEC President Edmund Daukoru had the authority to convene another meeting in advance of its next scheduled gathering in Nigeria in December to enable OPEC to stabilise the market if he felt it necessary.
“We are coming into a period where there is the possibility of recession in the U.S. economy,” said Khelil, who becomes alternate president of the oil exporting club from Jan 1, 2007.
“There are signs of recession. It’s not clear that there will be a recession. But we are watching that,” he added.
“We are following this (U.S. economic growth) with a lot of attention, because this element is critical for petroleum demand in the next few years.”
