This story is from December 23, 2005

Opec negotiates 'fair price' for crude

Saibal Dasgupta / TNN / Dec 23, 2005, 00:13 IST

Share

AA

Text Size

Small
Medium
Large

OPEC is in talks with consumer countries to work out a 'fair price' for its crude.

BEIJING: The Organisation of Petroleum Exporting Countries (Opec) is in talks with consumer countries to work out a 'fair price' for its crude.
Consumers have 'begun to accept' the current levels of prices and the $45-$55 a barrel price range seen in the past one year has not hurt the world economy, Opec acting secretary general Adnan Shihab-Eldin said on Thursday.
Opec president said China and India are changing the oil market culture in view of their vast demand.
He was trying to evaluate the likely demand for oil from China in 2006 and beyond by obtaining feedback from the Chinese government, he said.

The Opec chief said that oil prices were at an 'acceptable' level now. "Consumers always feel that the price is very high, and we feel the price is fair. We are trying to work out a fair price. We have heard many projections from $30 to $60 a barrel."
Kuwait energy minister Shihab-Eldin is visiting China to forge a closer relationship between China and the 11-member Opec in the face of stiff competition from non-Opec oil suppliers like Russia.

The price of oil has not hampered economic growth in the world. The world economy has grown at 4.6-5% a year over the past two years in the face of rising oil prices, he said.
The Opec chief said supply-demand factors played little part in determining oil prices, which were driven by worries over future shortages, international crisis and geo-political issues.
"We will do our best to make sure that sufficient levels of supply are maintained," Opec chief said.