KUWAIT, (Reuters) – Oil prices were likely to stay in the range of $70 to $80 per barrel for the rest of this year, a Kuwait oil official said in remarks published on Sunday.
U.S. crude CLc1 settled above $77 on Friday and has traded above $70 for most of the year on optimism that the global economy would help oil demand recover from two years of contraction in 2008-2009.
OPEC-member Kuwait has curbed its output with the rest of the producer group since late 2008, when OPEC made record cuts in supply to match rapidly falling demand.
A price range of $70-$80 was fair for both consumers and producers, Sami al-Rushaid, chief executive of state-run oil and gas exploration and production arm Kuwait Oil Co, was reported as saying by local newspaper al-Seyassah.
Prices could dip to $65 from time to time due to concern about the global economy and oil demand, he said.
Oil price fluctuation was normal given the situation in the global economy, he said. The oil price dipped to near $64 a barrel in May, a 10 month-low, after earlier in the month hitting a 19-month peak over $87.
Kuwait, the world’s fourth-largest oil exporter, pumped around 2.3 million barrels per day in May, according to a Reuters survey.