TEHRAN (AFP) — Iraqi Oil Minister Hussein al-Shahristani said in Tehran that an oil price of at least 70 dollars a barrel of oil is "acceptable," the official IRNA news agency reported on Thursday.
"It benefits both oil consuming and producing nations to reach an agreement on a certain oil price level and I think that in order to encourage investment it should be 70 dollars or more," he was quoted as saying on the sidelines of an oil and gas exhibition.
"OPEC members meeting in May will review the world's oil supply and demand situation and will discuss a fair price which will encourage the investors to invest in this sector," Shahristani said.
The next meeting of the Organisation of the Petroleum Exporting Countries (OPEC) is scheduled for May 28.
OPEC has reduced its oil production target by an overall 4.2 million barrels per day since September to 24.84 million bpd, the lowest since just after the US-led invasion of Iraq in 2003.
Oil prices hit a peak of 147 dollars in July but have fluctuated this year between 40 and 55 dollars.
Oil prices rose slightly towards 50 dollars a barrel on Thursday, despite news of surging US crude inventories that indicated weak energy demand in the recession-hit US economy, dealers said.
Iraq hopes to be able to pump six million barrels per day, up from current stated output of around 2.2 million, within the next four to five years as the new projects come online, Shahristani said earlier this month.
The country has the world's third largest proven reserves of oil, with more than 115 billion barrels, behind only Saudi Arabia and Iran.