Oil should not rise too fast: OPEC Sec-Gen

Oil prices should not rise too quickly and hurt the world economy, but a price of $80 a barrel would stimulate investment without putting a brake on growth, OPEC’s secretary general said on Monday.

The price of oil hit a 2009 high near $73 a barrel last week, up from below $33 in mid-December, and politicians in consumer countries have started to express concern that the rally could threaten their economies.
“Of course we do not want to see oil prices rising too rapidly and certainly not to harm growth in the global economy,” OPEC’s Abdullah al-Badri said in an email response to questions. “We need a stable oil price.”

“Yes, I am concerned that high oil prices will affect the economy but even at $80 a barrel, I am confident that this will not be the case.”

Oil around $80 is the level that officials from the Organization of the Petroleum Exporting Countries say is needed to ensure investment in new oil fields and refineries to meet the world’s future demand.

Reuters