OPEC faces uphill struggle to get $75 a barrel

LONDON (Reuters) – The OPEC members most dependent on costly oil face a long struggle as some demand has gone for good and a target of around $75 a barrel is a distant dream, the executive director of the Centre for Global Energy Studies said.

Fadhil Chalabi, who was previously a senior official in the Iraqi oil ministry and in the Organization of the Petroleum Exporting Countries, said last year’s record prices of nearly $150 meant consumer countries were changing their habits.

“One thing is certain, when the price went to $147.27 that created a shock among consumers. It made them feel they had to make economies and increase efficiency,” he told Reuters in an interview.

“Demand for its (OPEC’s) oil has been falling, especially in OECD countries … I believe that even after the recession, oil demand will be weak, except in China and India.”

Reuters