Markets should not panic over recent oil price plunge, says OPEC Secretary General

Organisation of Petroleum Exporting Countries (OPEC) Secretary-General Abdullah al-Badri said, markets should not panic over the recent plunge of oil prices because the situation will resolve itself,  said on Monday.

"Please do not panic, things will fix(ed) itself," Badri said during a panel discussion at a major energy industry conference in Abu Dhabi.

United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui, who was also on the panel, delivered a similar opinion, saying, "We are not seeing the price issue as a major issue that we need to panic about."

Badri indicated that both producers and consumers would be happy with oil prices in a broad range around US $100 per barrel.

"In the last five to six years we don't see any nagging by consumers or producers... $100, $110, $95, they are happy with these prices," Badri said.

The OPEC Secretary-General also said, "A high price is not preferable by OPEC, a low price is not preferable by OPEC" because high prices would mean less demand while low prices would reduce investment in oil supply.

Meanwhile, the basket of 12 crude oils of the OPEC closed at US $78.67 a barrel on Friday compared to $78.27 last Thursday (Oct 30), the OPEC Secretariat said.