If there were real demand for extra oil, Opec would do what was needed to satisfy it, he said, affirming that there was enough oil in the world for about the next 50 years.
“I predict probably prices of $ 150 to 170 dollars this summer. It (the market) will probably fall a bit towards the end of the year,” he said in an interview with the France 24 television channel.
Khelil said he did not expect prices to hit $ 200 a barrel, barring a major market crisis such as a halt in production in Iran.
In that case, he added, prices could possibly surge to “200, 300, 400 dollars.”
In the short term, he said, “everything depends on the European Central Bank and a decision it could take to raise eurozone interest rates. At that time, I think the price of oil will increase.”
Yesterday, oil prices jumped more than $ 3 after Libya said it was studying options to cut output in response to US threats against producer countries.
US crude rose $ 3.50 to $ 138.05 a barrel. London Brent crude traded up $ 3.81 to $ 138.14 a barrel.
“The crude oil market spiked sharply higher in early trading after Libyan National Oil Company chief Shokri Ghanem said that Libya was considering a production cut,” said Tim Evans of Citi Futures Perspective.
Ghanem, Libya’s most senior oil official, said he was studying the possibility of reducing production in response to a bill before the US Congress that would empower the Justice Department to sue members of Opec for limiting oil supplies.
ECB policymakers are to meet July 3 when many analysts predict they will decide to raise their benchmark rate by a quarter of a point to 4.25% in the face of rising inflationary pressure.
A strong euro, and a weaker dollar, would drive up demand for oil, which is marketed in the US unit and becomes cheaper for holders of non-dollar currencies.
