Total CEO says sharp oil price rise bad for everyone

DOHA (Reuters) – The sharp rise in oil prices is bad for everyone and tough decisions are required to both cut consumption and meet higher demand, French oil major Total’s CEO said on Monday.

“There is a problem of supply and demand and this is why the price is high, even if it is exaggerated by speculation,” Total Chief Executive Christophe de Margerie told reporters on the sidelines of an energy event in the Qatari capital.


“Definitely we don’t see it as good news, not for producing countries, companies or consumers. It is going too fast.”

Oil fell back to $125 a barrel on Monday after topping $126 last week to a new record high.

De Margerie said there was sufficient oil but the market was factoring in a risk of future supply shortages, driving prices higher.

“I really think it’s time to take decisions about what we can do on the one side to reduce consumption and on the other side to face additional demand for energy from emerging countries,” he said.

Guardian