Oil hits 6-month high, Saudi Arabia says world can cope

NEW YORK (Reuters) – Oil prices hit a six-month high near $64 a barrel on Wednesday after Saudi Arabia, OPEC’s biggest member, said the global economy had strengthened enough to cope with oil at $75 to $80 a barrel.

U.S. crude oil for July delivery rose $1.00 to settle at $63.45 a barrel, after earlier touching $63.82, the highest level since mid-November. London Brent crude gained $1.26 to settle at $62.50 a barrel.

Saudi Oil Minister Ali al-Naimi, speaking on the eve of a meeting of the Organization of Petroleum Exporting Countries in Vienna, said oil prices would continue to rise and that the global economy was now strong enough to support $75-$80 oil.

“The price rise is a function of optimism. Better things are coming in the future,” Naimi told reporters in Vienna.

The minister said OPEC did not need to change its output policy. The group already has agree to remove 4.2 million barrels per day of oil from the market in a bid to shore up prices battered by recession.

Reuters