Regal Group International: OPEC calls for $100 per barrel to counter weaker U.S. dollar

Oct. 15, 2010 - PRLog -- Regal Group International has learned that some OPEC member states have a called for an increase in the price of oil at the organizations recent Vienna, Austria meeting.

The ongoing dollar weakness puts the “real price” of oil at about $20 less than current levels the Venezuelan Energy and Oil Minister Rafael Ramirez said recently. The Organization of Petroleum Exporting Countries, which produces 40% of the world’s crude, decided to leave output targets unchanged and called for stricter adherence to quotas which are currently being exceeded by a supertanker load daily.

“OPEC is not interested in compliance right now,” the former Algerian oil minister who now runs a Geneva-based consultancy told Regal Group International sources recently. “They’re concerned about the dollar because as the dollar weakens, prices go up. They’re not paying any attention to production discipline.”

According to the Dollar Index, the U.S. currency is close to its lowest level since December against a basket of 6 currencies. OPEC’s nett oil revenue’s nominal value is expected to be $818 billion for 2011, 10% higher than this year according to the U.S. Energy Department.

Regal Group International has learned that the chairman of Libya’s National Oil Corporation pointed out that a higher oil price would offset the loss of revenue caused by the weaker dollar.
“We would love to see $100 a barrel,” the chairman said “We’re losing real income. Libya in particular would like to see a higher oil price.”

In the run-up to the Vienna meeting at the organisation’s head quarters the Kuwaiti oil minister told reporters that an oil price in the $70 to $80 range would be “most comfortable”, while his Algerian counterpart disagreed, saying between $90 and $100 would be considered “reasonable.”

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