Singapore, 2 November 2010

An oil price range of $70-90 per barrel is needed to stimulate investment in unconventional oil resources, Nobuo Tanaka, executive director of the International Energy Agency (IEA), said on Tuesday.

"For unconventional oil sources like oil sands, this level ($70-$90) is necessary for corporations to invest," Tanaka told Reuters on the sidelines of a press conference. "But does this warrant healthy economic growth? It's an interesting question. We don't know the answer."

Tanaka said that what the IEA is hearing from companies and producers is that $70-$90 is the desired price range.

"The oil price is a very important signal. If it is too low, there's a lack of incentive to invest in alternative sources of energy. If it is too high, it creates a problem. So the price should be moderate."

Oil price of $70-90/ bbl reasonable -Qatar: An oil price of $70-90 per barrel would be reasonable for consumers and producers, Qatari Oil Minister Abdullah al-Attiyah said on Tuesday.

The range matches that given by Saudi Oil Minister Ali al-Naimi on Monday, who widened his previous range of $70-$80 a barrel, a move taken as a bullish signal by crude markets.

"In my opinion $70-$80, but even if it goes to $90 it would be reasonable, not beyond that," Attiyah said.

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