RAS LAFFAN, Qatar: The current oil price at around $90 per barrel is good and crude prices over that level will not hurt the global economy, the chief executive of France's Total said Monday. Asked whether the current price of oil at around $90 was a good price, Christophe de Margerie said: “Yes. The range is much more $70 to $90. As far as we can continue with our investments in a profitable way, the current oil price is good.” Saudi Arabia said Saturday it still favored a $70-$80 price range for oil, a restatement of a two-year-old policy. Asked whether the oil price was driven by speculation, de Margerie said: “No. The demand will continue to grow in the long term. So there will be a higher price.” Asked during a visit to Qatar if oil prices above $90 would hurt the global economy, de Margerie said: “No. If things are not going well ... it is not because of oil. I don't see the problem of Greece (being linked) to oil.” Oil topped $91 Monday, helped by OPEC's decision to maintain the output levels, a falling dollar and a cold snap in Europe, dealers said. Brent North Sea crude for delivery in January advanced 77 cents to $91.25 a barrel in London late afternoon trade. New York's main contract, light sweet crude for January, gained 73 cents to $88.52. “OPEC leaving output unchanged over the weekend and a dollar sell-off helped to propel crude prices higher ... in the midst of the ongoing cold snap in northwestern Europe,” VTB Capital analyst Andrey Kryuchenkov said. Several reports, including one from the International Energy Agency raising its 2011 oil demand growth forecast, have indicated that oil markets fundamentals are strong, with oil inventories beginning to fall from historically high levels. But markets are worried that much of the strength in commodities stems from China, where monetary policy has encouraged high levels of consumption, leading to inflation. Chinese authorities have begun to tighten money supply and many analysts think that Beijing may soon raise interest rates. Traders are watching closely for any policy moves that would dampen demand in the world's number one energy consumer.
