OPEC expects oil prices to stabilise

Vienna: Organisation of Petroleum Exporting Countries President Germanico Pinto said the group expects oil prices to stabilise as crude recovers from a slump in demand caused by the worst financial crisis since the Great Depression.

Oil will remain between about $70 (€51) and $80 (€58) a barrel this year amid a slight increase in global consumption, Pinto, who is Ecuador’s Minister of Non Renewable Natural Resources, said. The group is likely to leave output quotas unchanged when it meets next month, he said.

“The general trend is clear, towards a reasonable price stability,” said Pinto, in charge of energy for OPEC’s smallest member state. “We don’t see any crisis scenario this year.”

Oil has surged 85% in the past year amid signs of stronger global recovery after the economic crisis. Global oil demand reflects slow US economic expansion and sustained growth in China, he said.