21-09-00 The price of oil will eventually settle back to between $ 22 and $ 28, according to OPEC President Ali Rodriguez. Speaking in the Argentinean capital, Buenos Aires, Rodriguez blamed well closures and a lack of space in US refineries for the current inflated prices. OPEC has previously stated it sees the ideal price for crude between $ 22-28.
Rodriguez did not, however, indicate when the price would fall. But David Knott, an analyst with the Middle East Economic Survey, predicted it maybe some time before there is a considerable drop in price.
"There is a squeeze on the US refineries, and on transportation capacity, i.e. the extra tankers have been chartered to carry the extra oil OPEC has been pumping this year. But it is about more than just throwing oil at the problem, there is enough oil, the shortage is on the product," he said.
Meanwhile, brent crude oil for November delivery fell as much as 83 cents, or 2.5 %, to $ 32.91 a barrel on London's International Petroleum Exchange. US crude oil for November delivery fell as much as 72 cents, or 2 %, to $ 34.52 a barrel.