November 29, 2008 / 8:45 AM / 10 years ago

Saudi's Naimi says $75 is a "fair" price for oil

CAIRO (Reuters) - Saudi Arabia on Saturday identified $75 a barrel as a “fair” world price for oil, the first time in years that the world’s biggest exporter has cited a price target.

Saudi Oil Minister Ali al-Naimi, speaking ahead of an OPEC meeting that is expected to defer any further production cuts until next month, also said that he wanted to see more evidence of compliance with last month’s OPEC production cuts before OPEC’s next policy step.

He said current OECD commercial oil inventories of 55 to 56 days of forward demand was too high and he wanted to see it reduced to 52 days. He said world oil demand had fallen by 1.4 to 1.5 million barrels per day (bpd).

Oil prices have fallen by nearly two-thirds since hitting a record high above $147 a barrel in July, closing on Friday at $54.43 a barrel.

Reporting by Peg Mackey; Writing by Jonathan Leff

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