OPEC: Falling dollar to push oil to $200

OPEC: Falling dollar to push oil to $200OPEC's President Chakib Khelil has warned the falling value of the US dollar will drive up international oil prices to $200 a barrel.

"Questioned about a possible rise which would go to $200, the minister (Chakib Khelil) did not rule out this eventuality, explaining that this rise is indexed from now on to the fall in the dollar or to the rise in the dollar," Algerian newspaper El Moudjahid wrote, Reuters reported.

"The prices are high due to the fact of the recession in the United Sates and the economic crisis which has touched several countries, a situation which has an effect on the devaluation of the dollar, and therefore each time the dollar falls one percent, the price of the barrel rises by $4, and of course vice versa," Khelil, also the Algerian Energy Minister said.

He predicted that if the dollar increases by 10 percent, the prices will fall by 40 percent.

"But I don't think that an increase in production would help lower prices, because there is a balance between supply and demand and the stocks of gasoline in the United States have recorded a surplus and are at their highest level for five years," he concluded.

Source: PressTV

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