The Organization of Petroleum Exporting Countries is now hearing the call...
The Organization of Petroleum Exporting Countries is now hearing the call for a price-band shift from another member, Nigeria. The country has asked the organization to raise the oil cartel's target for crude prices, because of weakening dollar and for the recovery of the global economy.
The Presidential Adviser on Petroleum, Dr. Edmund Daukoru speaking at an energy conference in Cairo said the current 22-28 dollars per barrel price band targeted by OPEC for its reference basket of crudes should be raised. "We officially say... we need to move the band," he said.
Asked whether he was actually calling for the price band to be raised, he replied: "Yes, yes, because of the weakening dollar.
On whether the recent fluctuations of oil prices between 28 and 35 dollars should be confirmed as the new band, he declined to give figures, but hinted that an average of 30 to 31 dollars per barrel was acceptable. "It (the market) is stable at about 30-31," he said.
He said the new band "has to be one that is really in equilibrium. We don't want to go back to the days of boom and bust cycles. We want a stable market."
