$85 a barrel for oil 'reasonable'

Individuals who use their private wealth for investing in oil have been informed that an oil price of $85 (£55) a barrel is a ’reasonable level’, according to Reuters.

Head of research at the Organization of the Petroleum Exporting Countries (Opec) Hasan Qabazard told the news agency such a price will not pose a risk to economic recovery.

Those who use their private wealth to purchase shares in oil were reassured Monday’s (April 26th) level of £55 was above the $70-$80 mark many in Opec class as fair.

He said: ’I think it’s a reasonable price that will promote economic development and it’s also a reasonable price to producers to invest.’

Furthermore, there is plenty of the commodity in the market and Organisation for Economic Co-operation and Development stocks are 61 days of forward demand cover.

The ’reasonable’ level is 52-54, he asserted.

Opec includes 12 oil-exporting developing nations and helps to unify the petroleum policies of its member countries.ADNFCR-2318-ID-19744418-ADNFCR