Saudi says oil at $70-80 won't hamper economy

Oil prices between $70 to $80 a barrel are acceptable to all, the oil minister for top world exporter Saudi Arabia reiterated, adding this price does not hamper global economic growth. Saudi Arabia's oil minister Ali al-Naimi was speaking in a video interview posted on the website of the International Energy Forum. The IEF issued a press release on Monday referring to the interview. "The producer is looking at this price, the consumer is looking at the price, the investor is looking at the price and everybody is saying this is great," al-Naimi said in the interview. Saudi Arabia has previously said oil at $70 to $80 is reasonable and many of its fellow Opec members have voiced support for that level, which analysts say effectively puts a floor of $70 under the oil market. US crude oil futures were trading just above $74 on Tuesday, down around 1.5 per cent on the day and on track for a 6.5 per cent fall this month. The Saudi minister said $70 to $80 was not a "band" or a formal target. The Organisation of the Petroleum Exporting Countries set price bands in the past, but abandoned the policy.