OPEC chief sees $110 a barrel oil as fair

Oil prices could rise about $25 from their present levels to $110 a barrel without threatening the world economy, OPEC Secretary General Abdullah Al-Badry said June 15.

Crude prices have dropped steeply in recent months with the U.S. benchmark selling June 15 at just below $85 a barrel. That’s about 20 percent less than where they were in February, and Al-Badry said it’s far below what consumers can afford.

“$110 is not a threat to the world economic growth,” Al-Badry told reporters a day after OPEC oil ministers agreed to keep the cartel’s total output ceiling at 30 million barrels a day.

Many of the 12 member nations of the Organization of the Petroleum Exporting Countries consider present prices too low and came to the June 14 meeting seeking a production cutback to reduce supplies and push prices upward.

That, however, was opposed by OPEC kingpin Saudi Arabia — and Saudi oil minister Ali Naimi had even initially suggested he was looking for a production boost. The Saudis have signaled their readiness to make up for any shortfall caused by international embargoes on Iranian crude and already account for about a third of total daily OPEC output of nearly 32 million barrels, including Saudi and other overproduction.

—Associated Press