OPEC No Longer Happy with $75/bbl Target Price
With the burst of the FY’08 oil bubble last year, OPEC has taken actions to bouy the price of oil with several sets of substantial production cuts made over the winter. At the time they had set a target price for a barrel of oil to $75. This week they’ve decided to set their sights a little higher.
“The price will go to $80-$90 maybe at the beginning of 2010,” OPEC’s Abdullah al-Badri told the Reuters Global Energy Summit.
“I don’t think the price will go down… By the end of the year we’ll see $75. $80-$85 is possible — not with the demand we see at this time, but if demand picks up month after month, then maybe we’ll see this price.”
Last week, Badri said he expected to see oil at $70 to $75 a barrel by the end of this year. U.S. crude has already more than doubled from a low of $32.40 reached in December, its weakest in nearly five years, to around $68 on Tuesday.