Oil Prices Likely to Hit $200, Says OPEC President

The weak dollar and global political insecurity are likely to push oil prices to $200 per barrel, revealed media reports, citing Chakib Khelil, OPEC president and Algeria’s Minister for Energy and Mines.

Mr Khelil’s remarks come at a time when oil prices have come close to $120 per barrel. His comments imply that Algeria wants OPEC to stand firm against requests from the US and European leaders for the cartel to pump in more oil to help ease prices.

Algeria’s government newspaper El Moudjahid quoted Mr Khelil as saying: “I don’t think that an increase in production would help lower prices, because there is a balance between supply and demand and the stocks of gasoline in the US have recorded a surplus and are at their highest level for five years.

“The prices are high due to the recession in the US and the economic crisis, which has touched several countries, a situation that has an effect on the value of the dollar. Each time the dollar falls 1%, the price of the barrel rises by $4 and of course vice versa.”