$100 per Barrel Crude Price Considered Reasonable and Fair

The Kingdom of Saudi Arabia recently said that an oil price per barrel of $100 is reasonable. Meanwhile, Kuwait thinks that having prices of oil at that level is fair and that the crude market is steady.

At the sidelines of the Gulf crude conference in Kuwait, Ali Al-Naimi, the Petroleum and Mineral Resources Minister of Saudi Arabia, said that he considered a price of $20 per barrel for crude oil reasonable back in 1997. By the year 2006, he thought that a price of $27 per barrel was acceptable.

But, the current oil price is now $100 per barrel, and the minister said that, once again, he believes it to be a reasonable cost.

Hani Hussein, the Oil Minister of Kuwait, said that the current price of oil is fair enough.

Hussein said that there is some excess supply, yet they believe that the present condition of the oil market is stable.

The minster of Kuwait said that, in general, they are satisfied with the prices of oil at this time. He added that the current prices are reflective of the general situation of the crude market. Moreover, he said that the market is basically well-balanced.

In addition to all these, Hussein said that the crude production of Kuwait at this time is a little lower than 3 million barrels each day due to some work for maintenance purposes. He also said that after the completion of the maintenance very soon, Kuwait’s daily oil output will go back to 3 million barrels.