Go Finance Reporting in KUALA LUMPUR - Oil and gas companies from Malaysia, Petronas think fundamentally the price of crude oil price level should be lower than currently is between USD75-80 per barrel.
"Given the market's fundamentals and the cost of the current environment, I believe that oil prices should have to remain between USD75-80 per barrel," said Shamsul Azhar Abbas, CEO of Petronas, as quoted by AFP on Monday (06/06/2011).
Oil prices today are moving in the Asian markets mixed ahead of OPEC countries meeting this week in Vienna, Australia. Meanwhile, in New York's main market, the price of light sweet crude for July delivery rose eight cents to U.S. $ 100, 3 per barrel. As for North Sea Brent crude oil fell six cents to USD115, 78 per barrel.
By looking at current oil prices soar above $ 100 per barrel, Shamsul questioning concerning the causes of these conditions because it is not from lack of supply in the market. "How can achieve this price level? This is the beginning of the economic cycle, given the absence of clear evidence of deficiencies in the physical market," he said
The 12-nation Organization of Petroleum Exporting Countries (OPEC) will meet Wednesday in the Austrian capital, Vienna, amid growing fears that high oil prices could further destabilize the world economic growth and energy demand. Turning to oil demand in Asia, Shamsul predicts that this region will grow rapidly with the consumption of more than 250 billion barrels of oil today and in 2030 will be more than six times the current conditions.
In the next 20 years, he said Asian manufacturers have to extend the (oil) field life and increase hunting for oil to meet strong demand. Shamsul said the geology-based assessment has shown that oil is found in Asia are approximately 50 billion barrels, equivalent to one-and-half the combined reserves of Indonesia, Vietnam and Malaysia. "Our challenge to make them commercially attractive (for exploration)," he said. (GoFinance)
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