Saudi Arabia Proposes $60 as Acceptable Oil Price

Saudi Arabia sees $60 a barrel as an acceptable level for benchmark crude oil prices, and is opposed to any dramatic fluctuation in the price, the kingdom's ambassador to the United States said on Thursday.

Prince Turki al-Faisal said Saudi policy had always emphasized the need for gradual price movements for the sake of producers and consumers.

"Our continuous policy is that price corrections should be incremental and they should be equitable for both producers and consumers," he told an audience after a talk on education at Princeton University. "We don't want to see exorbitant hikes or exorbitant drops."

He cited Saudi oil minister Ali al-Naimi as stating that the kingdom is satisfied with oil around the current level of $60 a barrel.

"Our oil minister has publicly said we will accept $60," the ambassador said, ahead of an OPEC meeting on Dec. 14 in Abuja, Nigeria, at which the producer group may adjust production levels.

He stressed that Saudi Arabia, the world's biggest oil exporter and the key member of OPEC, doesn't want to disrupt consumer economies.

"Saudi Arabia has taken the position that if there are to be price rises in the oil market, they should be reasonable and they should be affordable to consumers," he said.