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Page added on March 23, 2011
OPEC sees “acceptable” oil peak at $120
OPEC believes the oil price is approaching $120 per barrel but unlikely to go higher, a level that is “acceptable” and will not hinder global growth, Iraqi oil minister Abdul-Kareem Luaibi said on Tuesday.
“Global oil prices are moving towards $120 a barrel. We consider this an acceptable price that will not harm global growth,” Luaibi told a news conference in Baghdad. “We think the price will not exceed $120 per barrel.”
Oil prices slipped on Tuesday, with Brent crude falling below $115 a barrel as investors betting prices would rise with Western involvement in Libya took profits in anticipation of a slowdown in air strikes.
Brent crude for May 1 delivery LCOc1 was down 59 cents at $114.37 at 1320 GMT.
Iraq is a member of the Organisation of the Petroleum Exporting Countries.
3 Comments on "OPEC sees “acceptable” oil peak at $120"
Wheeldog on Wed, 23rd Mar 2011 6:34 am
I get the feeling that OPEC is using a roundabout way to tell us that they cannot substantially increase production. Oil at $120 will quite possibly kick the legs out from under a fragile economic recovery. At that point most people will cut back on oil consumption likely forcing the price back below $100. If OPEC actually has sufficient spare production capacity why wouldn’t they use it to prevent a recession rebound?
Anthony on Wed, 23rd Mar 2011 8:20 am
Hmm. I remember in fall when I read pretty much the same article on this site. The only difference it wasn’t $120 oil,it was $100 dollar oil that the world can “tolerate”… I agree with Wheeldog, They obviously know it’s coming since they know they are very close to at at max production. The only thing that will drop prices like in fall 08′ will be another financial collapse. Hpwever the next time we reach that point society will collapse along with the dollar.
Rick on Wed, 23rd Mar 2011 8:25 am
There is no recovery folks. Peak Oil is here, and most don’t have a clue.
A good article to read: http://www.chrismartenson.com/blog/straight-talk-john-rubino-damage-already-done/54475