OPEC’s El-Badri Says $70-90 Is ‘Reasonable’ Oil Price

By Francine Lacqua and Grant Smith

Jan. 30 (Bloomberg) -- Abdalla el-Badri, OPEC secretary- general, said $70 to $90 a barrel is a “reasonable” oil price to support investment in new production.

“It’s a reasonable price where we can invest and that’s the most important thing for the world,” el-Badri said in a television interview at the World Economic Forum in Davos today. “We control 75 to 80 percent of the world reserves, we need to develop that reserve so we can have more supply to the world.”

The Organization of Petroleum Exporting Countries, responsible for 40 percent of the world’s oil supply, announced a record production cut last month to support plunging prices. Crude oil futures have declined more than $100 a barrel from a record $147.27 a barrel in July to trade around $40 on the New York Mercantile Exchange this week.

The group is next due to meet on March 15. OPEC won’t hesitate to cut output further to keep prices from falling, el- Badri said earlier this week.

El-Badri reiterated his call for curbs on speculators to reduce oil price volatility.

To contact the reporter on this story: Francine Lacqua in Davos at flacqua@bloomberg.net; Grant Smith in London at gsmith52@bloomberg.net