Saudi Oil Minister Ali Al-Naimi said oil prices needed to return to US$75 to keep the more expensive new projects at the margins of world supply on track.
'There is a good logic for US$75 a barrel,' said Mr Ali. 'You know why? Because I believe US$75 is the price for the marginal producer. If the world needs supply from all sources, we need to protect the price for them. I think US$75 is a fair price.'
Mr Naimi was speaking ahead of an Opec meeting at 3 pm in Cairo (9pm Singapore time) to review progess on output restraints agreed in the past two months that aim to remove 7 per cent of its supply from the world market.
Ministers were expected to defer a further production cut until their meeting next month.
His comments are likely to come as a relief to major oil consumer countries hoping Opec will not seek to push crude prices back towards US$100 barrel during a recession. -- REUTERS