Kuwaiti Oil Minister: $100 Oil Will "Fuel Recession"
Kuwait’s oil minister Sheikh Ahmed Abdullah al-Sabah, is pretty finicky about oil. It has to be just right, otherwise we might have a mess on our hands, he says.
When asked what’s a good price for oil by Platts, he says, "There is no good price. There is a logical price. Logical is what market forces prevail at that time and for the time being $60 to $70 to $75 per barrel is acceptable." But he’d really hate to see a big spike. "Hopefully it will not jump to the hundreds, because this will fuel recession," it would be like "going back to square one."
If oil did race towards the hundreds, don’t blame Kuwait, at least that’s how we’re interpreting this quote: "You see, the problem is that the market is not moving or responding to fundamentals. It is only sentiments driving the market." So, if Kuwait were to increase its supply, it wouldn’t matter much.
Everyone is loving ‘green shoots’ and that’s driving the market. "Since the market is doing very well in terms of the stock market, you know everything is improving, even there are few negative signs coming out especially with regard to growth," says the Sheikh.
He sees oil demand rebounding in the second half of the year.