Houston - The impact that oil prices, currently boosted by unrest in the Middle East, could have on the global economy is concerning, more so as oil markets seem to be well-supplied with crude, Angola's oil minister said Monday.
"We are concerned, we have said that," said Jose Maria Botelho de Vasconcelos, adding that high oil prices not only result in more volatility for a recovering economy, but also in higher costs for oil producers. "A situation like this doesn't satisfy anybody."
In an interview with Dow Jones Newswires ahead of the IHS Cambridge Energy Research Associates meeting here, the minister said that an ideal price for Brent crude would be $90 a barrel. On Monday, Brent for April delivery settled down 0.8% at $115.04 a barrel.
West Texas Intermediate futures in New York rose 1% to $105.44 a barrel, the highest level since Sept. 26, 2008.
Currently, oil producers see the market as "very well supplied," with high levels of inventories, de Vasconcelos said. Unfortunately, instability in the Middle East has prompted speculation in the markets to drive prices up; changes in the value of the U.S. dollar versus the euro have also contributed to an increase in oil prices.
That is why members of the Organization of Oil Exporting Countries don't see the need to call for an extraordinary meeting, the minister said. "The fundamentals of the market are in a good position," he said.
The minister said Angola, a member of OPEC, is producing about 1.7 million barrels of oil per day. The country has a production capacity of two million barrels of oil per day, he said.
-By Angel Gonzalez, Dow Jones Newswires; 713-547-9214;