Oil to stay around $90,$100 in 2011
KUWAIT: Crude oil prices will likely stay between $90 and $100 until the end of 2011 due to the International Energy Agency's (IEA) emergency stock releases, a member of Kuwait's Supreme Petroleum Council (SPC) was quoted as saying on Sunday.
The group of 28 industrialised consumer nations said on June 23 it would release 60 million barrels of oil from strategic reserves to compensate for a loss of Libyan crude supply and dampen prices.
The unexpected IEA move will likely keep oil prices between $90 and $100 for the rest of the year, Imad al-Atiqi, part of the OPEC member's top oil policy body, was quoted as saying by Kuwaiti newspaper al-Seyassah on Sunday.
Kuwait's oil minister Mohammad al-Busairi told Reuters last week that IEA's move was a short-term measure and that only OPEC could meet long term demand for oil.Front month US crude oil has traded between $89.61 and $99.95 since breaking below $100 on June 10 on news Saudi Arabia was offering more oil to customers, a strong dollar and weak equities.
US crude prices ended June 23 at around $91 after the IEA stock announcement, down about $4.40 from previous close, and have traded below $96 since.Crude prices hit a high for the year so far of $114.83 on May 2.
Copyright Reuters, 2011
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