Total CEO says oil at $90/bbl is a good price

RAS LAFFAN, Qatar (BestGrowthStock) – The current oil price at around $90 per barrel is good and crude prices over that level will not hurt the global economy, the chief executive of France’s Total (TOTF.PA: ) said on Monday.

Asked whether the current price of oil at around $90 was a good price, Christophe de Margerie said: “Yes. The range is much more $70 to $90. As far as we can continue with our investments in a profitable way, the current oil price is good.”

Leading OPEC producer Saudi Arabia said on Saturday it still favored a $70-$80 price range for oil, a restatement of a two-year-old policy.

Oil rose on Monday, with U.S. crude for January trading at $89.06 per barrel at 1227 GMT. (O/L: )

Asked whether the oil price was driven by speculation, de Margerie said: “No. The demand will continue to grow in the long term. So there will be a higher price.”

Asked during a visit to Qatar if oil prices above $90 would hurt the global economy, de Margerie said: “No. If things are not going well … it is not because of oil. I don’t see the problem of Greece (being linked) to oil.”

The Organization of the Petroleum Exporting Countries decided on Saturday, as expected, to maintain a production policy in place for two years.

Oil has risen to above $90 this month as sub-zero temperatures have swept across the northern hemisphere.

(Reporting by Humeyra Pamuk, Writing by Raissa Kasolowsky and Firouz Sedarat)

Total CEO says oil at $90/bbl is a good price