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05.08.09

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Saudi Oil Minister Links Oil Prices to Biofuels

03.03.08

Saudi Arabia's oil minister Ali al-Nuaimi says oil prices will stay above a minimum of $60 to $70 dollars per barrel because public policy in many countries is to invest in alternative energy sources to compete with petroleum, and this can only occur if oil is priced at this level.

"If you take all the subsidies that go into producing a barrel of biofuels,” he said, “I doubt that anybody can make money in that business with a price of less than $60 or $70. Therefore, a line has been drawn below which the price cannot fall."



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