'Reasonably' High Oil Prices Important for Both Producers, Consumers

Relatively high prices for oil on the world market is beneficial for both oil producers and consumers, a communication adviser for the Norwegian Ministry of Petroleum and Energy (MPE) told Sputnik on Friday, commenting whether MPE sees the $50 per barrel price recently proposed by Nigeria as reasonable.

MOSCOW (Sputnik), Alexander Mosesov — On Thursday, Nigerian Petroleum Minister Emmanuel Kachikwu stated that the meeting of the Organization of the Petroleum Exporting Countries (OPEC) member states and other oil producing countries on finalizing the Doha output freeze deal is to take place on March 20. Kachikwu added that the oil producers would aim to boost prices to $50 per barrel.

"The Ministry of Petroleum and Energy (MPE) has regular contact with other countries and participants in the oil and gas marked… The MPE believes that a stable oil market, with prices on a reasonable high level, is important for both oil producing and oil consuming countries," the adviser said.

In mid-February, the energy ministers of Saudi Arabia, Qatar, Venezuela, and Russia held talks on the current oil market situation in the Qatari capital of Doha and agreed to freeze oil production at January levels throughout 2016 if other countries followed suit. A number of other states, including Venezuela and non-OPEC member Oman, have expressed interest in the deal.

Global oil prices fell from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003 largely because of prolonged global oversupply and weak demand.