Petronas: Oil prices should be between $75 and $80/barrel

KUALA LUMPUR, Malaysia — The chief of Malaysia’s national oil company Petronas said yesterday that global oil prices are too high and should fall back to between $75 and $80 a barrel.

While demand has surged, Petronas Chief Executive Shamsul Azhar Abbas said there was no real evidence of an oil shortage and that current prices above 100 a barrel appeared largely linked to speculation in crude markets.

“Given the current state of market fundamentals and the cost environment, I believe prices should remain within the range of 75 to 80 per barrel,” Shamsul told a two-day Asian oil and gas conference.

Oil prices soared from about 70 a barrel last summer to as high as 115 this spring, and currently are hovering above 100. They were driven up by turmoil in the Middle East and North Africa, rising demand in developing countries and a weakening U.S. dollar. /ap