Oil prices will not fall under -$ 70: NaimiALGIERS (Reuters) - Oil rates won't fall listed below to a barrel as this is the minimal degree at which alternate gas are financially feasible, Saudi Oil Minister Ali al-Naimi claimed in statements released on Sunday by Algeria's APS information company.
"From currently there's a line below which prices won't fall," the official company quoted him as saying in an interview with Petrostrategies publication.
He claimed this entailed "the low expense of production of different fuels, whether that's biofuels or tar sands" which had a limit "between as well as ", APS reported.
"If this page take into account all the aids associated with the manufacturing of a barrel of biofuels, I doubt whether anybody could generate income from that with a cost lower than or ," he was priced quote as claiming, describing the cost of a barrel of oil.
He claimed that level indicated a line "under which the degree of prices might not go".
U.S. crude closed at 1.84 a barrel on Friday as well as London Brent crude finished at 0.10. Oil at these costs has piled pressure on the Company of the Petroleum Exporting Countries (OPEC) to avoid reducing outcome when it fulfills in Vienna on March 5.
APS said Naimi tested the "Top Oil" concept favored by traditional energy experts who predict that world supply of oil, including non-traditional oil, will peak in concerning 2010.
Naimi told Petrostrategies that proceeded expedition financial investment around the world would avoid the quick fatigue of supply.
He mentioned the example of Saudi Arabia, whose subsoil was "not completely discovered," APS reported.
He approximated that Saudi Arabia, many thanks to ongoing expedition, could be able to find an additional 200 billion barrels of oil to contribute to its reserves.
However there was no reason for building result ability past degrees currently prepared, he stated.
State oil firm Saudi Aramco intends to raise supply capability to 12 million barrels per day, enough to meet 14 percent of current world need, by the end of 2009.
Naimi stated in 2015 that more expansion of Saudi manufacturing ability may not be needed beyond 2009 as customers expand even more energy effective as well as switch to alternative fuels.
Saudi Arabia holds the globe's biggest oil gets and is expanding supply ability to satisfy increasing world demand at once when higher prices are bring about delays as well as terminations across the oil and gas sector.
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