Last Updated: Mon Jul 04, 2011 00:50 am (KSA) 21:50 pm (GMT)

Kuwaiti official says IEA release will keep crude prices stable for remainder of year

Pumps are seen at a gas station in Tokyo June 24, 2011. (REUTERS photo)
Pumps are seen at a gas station in Tokyo June 24, 2011. (REUTERS photo)

Crude oil prices are poised to stay between $90 and $100 until the end of 2011, cushioned by the International Energy Agency’s (IEA) emergency stock releases, a member of Kuwait’s Supreme Petroleum Council said.

The group of 28 industrialized consumer nations on June 23 said it would release 60 million barrels of oil from strategic reserves to compensate for a loss of Libyan crude supply and to stabilize prices.

The unexpected IEA move will likely keep oil prices between $90 and $100 for the rest of the year, Imad Al Atiqi, part of the OPEC member’s top oil policy body, told Kuwait-based al-Seyassah newspaper on Sunday.

Kuwait’s oil minister, Mohammad Al Busairi, said last week that the IEA’s move was a short-term measure and that only OPEC could meet long-term demand for oil.

United States crude oil has traded between $89.61 and $99.95 since breaking below $100 on June 10 on news Saudi Arabia was offering more oil to customers, a strong dollar and weak equities.

US crude prices ended June 23 at around $91 after the IEA stock announcement, down about $4.40 from the previous day’s close, and have traded below $96 since.

Crude prices hit a high for the year of $114.83 on May 2.

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