afrol News, 30 March - Angolan oil minister, Jose Botelho de Vasconcelos, has said oil prices could reach $75 per barrel in 2009 despite the economic crisis.

The oil prices plummeted from the record high of $147 per barrel in July 2008 to less than $40 in December last year, prompting the producing cartels to cut on production to strike a balance between demand and the global recession.

The newly elected Organisation of Petroleum Exporters Countries leader, Angola, said the complete adherence by its 12 members to ration output since December last year, to control oil prices in the market, has somehow stabilised the crude prices. The compliance is estimated around 80 percent, according to the minister.

Analysts have argued that the current global economic recession does not call for oil prices hike in the global markets, saying although a cut might stabilise the prices, the consumers will be hardest hit.

Last year’s fuel and commodities price hikes resulted to riots in the number of African states, with citizens demanding government subsidies on food and fuel.

The Minister said he hoped the upcoming G20 meeting scheduled for Thursday in London will help stimulate the world economy and contribute to growing demand for oil and higher oil prices.

"The trend in oil prices is positive. We hope that this trend continues until we reach above $70 per barrel before the end of the year,” the minister said.

OPEC, the supplier of 41 percent of the world's oil, had cut oil production by 4.4 million barrels per day, between September and December, but the oil prices plunged to less than US$40 per barrel despite the cut.

The G20 meeting is expected to discuss the regulation of financial markets, and rescue plans to save the world economy recover from the deepest recession.

By staff writer

© afrol News

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