SABIC Chief: Oil Price Below $65/Barrel a 'Disadvantage'
An oil price of $65 per barrel is still reasonable for all producers, but a price below that level will be a "disadvantage," the chief executive of Saudi Basic Industries Corporation (SABIC) said on Sunday.
"Of course $65 is still reasonable for all producers. If it continued to be much lower, it will be to our disadvantage," Chief Executive Mohamed al-Mady said at an industry event in Bahrain.
He said he was referring to "Middle East countries vs. developed countries and to the petrochemical industry in general."
OPEC's reference crude oil basket price fell further to $69.64 a barrel on Thursday from $70.57 the previous day, OPEC said on Friday. The reference basket comprises 12 crudes.
Mady also said he expected to see 2% growth in petrochemical demand this year in Europe.
"The U.S. economy is very strong, China still, India, the Middle East. Europe is a little bit affected by the financial crisis, but still it has a modest growth and it is continuing to grow. We talk about 2% growth in 2010," Mady said, adding he was referring to petrochemicals demand.
"Demand is still holding because the U.S. and China are sustaining the demand," he said. "In China, I've talked to a lot of Chinese and they have not confirmed they were going to lower demand."
