Tuesday, Dec 06, 2011
DURBAN (Dow Jones)--Today's oil prices of about $100 a barrel are "good," but are determined by market forces of supply and demand that are today in balance, Saudi Oil Minister Ali Naimi said Tuesday.
"Supply and demand (are) balanced," Naimi told reporters Tuesday on the sidelines of UN-organized climate negotiations. Naimi said he wasn't expressing a person preference for today's oil prices, or other oil prices.
Naimi declined to speculate on the outcome of the Dec. 14 OPEC meeting in Vienna, telling reporters to wait for next week. Naimi also declined any comment on a possible European oil embargo on Iran and any impact that could have on oil markets or on Saudi supply plans.
Naimi last month told reporters he was "very happy" with oil prices, but later the same day emphasized that the Saudis adapt to market dynamics and that oil prices are determined by the market.
Naimi's comments come as the Organization of Petroleum Exporting Countries prepares for its first meeting since a June gathering ended in disagreement.
Oil prices remain high, despite ongoing concerns about the eurozone and economic weakness. The International Energy Agency has warned that high prices could damage the economic recovery. On Tuesday, BP PLC (BP) Chief Executive Robert Dudley told a Qatar event that the U.S. economy was vulnerable to high prices.
Light, sweet crude for January delivery fell 20 cents, or 0.2%, to $100.79 a barrel on the New York Mercantile Exchange. Brent crude on ICE Futures Europe traded up 32 cents, or 0.3%, to $110.13 a barrel.
-By Devon Maylie, Dow Jones Newswires; +27 11 783 7848; devon.maylie@dowjones.com
-By John Biers, Dow Jones Newswires; +33 1 40 17 17 38; john.biers@dowjones.com
(Dan Strumpf in New York contributed to this report.)
(END) Dow Jones Newswires
06-12-11 1458GMT
