Oil investors see $30-34/bbl oil price as fair: Naimi

Oil investors see $30-34/bbl oil price as fair: Naimi

London (Platts)--29Nov2004


Investors in the global oil industry see $30-34/bbl as a fair range for oil
prices to guarantee their return on investment, Saudi Arabian oil minister Ali
Naimi said Monday. 

In the 1990s, investor were making a 15-16% rate of return and were happy with

an oil price of $20/bbl, Naimi said after a speech to an industry conference

in London. "If you wanted to make that rate of return in today's environment,

you would probably be looking at $30-34/bbl," Naimi said.
"To make the same rate of return [the investor] needs a higher price." Oil
producing countries, he said, would also want a price of around $30/bbl if
their economies are heavily dependent on oil revenues, he said, "If [a
producer] is 80-70% dependent on that revenue, he wants a $30 price also."
Naimi said there were no current plans in OPEC to change the pricing of the
group's oil sales away from US dollars.

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.