It seems the $55-per-barrel that Gulf producers earlier believed would help them to return their economies to growth has turned out to be insufficiently high, thus the new $60 target. Iraq’s Oil Minister Jabbar al-Luaibi confirmed this plainly: “Iraq wants prices to rise to $60. This is our aim.”
We can easily understand why $60 is much more attractive for Gulf producers: earlier this year Fitch warned that most Middle Eastern and African oil producers would remain in the red this year, with average oil prices at $52.50 a barrel, as estimated by the ratings agency.
