Saudi Arabian Oil Minister Ali al-Naimi warned the top energy companies at the G8 in Rome that the price of oil may increase to above USD 150 a barrel. Energy ministers and officials at the Group of Eight energy summit wrapped up the two-day meeting by urging the industry to pump money into projects to expand capacity despite the credit crisis, which has put the brakes on investment. At the moment the price of oil is sitting above USD 60 per barrel. Producers are concerned that it remains below the USD 75 level needed to spur investment while consumer nations fear that a further rise in prices could hurt global economic prospects. The recent rally in prices is expected to have eased OPEC concerns about high inventories and weak demand, and OPEC officials have suggested an output cut is unlikely, though Libya says that possibility still exists. Ali al-Naimi said the world was heading for a fresh spike after the current phase of faltering demand and lower prices, which he said reflected the economic downturn rather than being an indicator of things to come.
