CRUDE oil prices above $US120 a barrel are "abnormal" and could fall to about $US78 under the right circumstances, OPEC president Chakib Khelil said in Jakarta yesterday.
"If the dollar continues to strengthen and the political situation (regarding Iran) improves, then the long-term prices will be about $US78," Mr Khelil said, adding the market was well supplied with oil.
Crude prices have doubled over the past two years but have fallen from record highs of $US147 a barrel earlier this month.
They were trading at around $US125 yesterday.
"There's a balance in the market," Mr Khelil said. "I would say stocks are at a good level and there hasn't been any disruption in demand."
Asked whether any members of the Organisation of the Petroleum Exporting Countries should cut production if oil prices continued to fall, he said: "No, I don't think so. Why should they cut production?
"They always want to make sure there's good supply and demand and to satisfy the demand."
Oh glory be when we can have oil at $78 a barrel! We can have gas back down to $2.50 a gallon and the world will be right again. Nevermind that gas was $1.80 only a few short years ago.
Unfortunately for them, many Americans and many auto makers are already shifting to more fuel efficient and electric cars. People have been burned twice now by high oil prices, and we're simply not going to let it happen again because of terrorism and pure greed upon the part of OPEC nations.
You're too late guys, you should have done something about it a while ago.
Travis
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