KUWAIT CITY/LONDON: The top executive of Kuwait's state-run oil company said Monday he thought the oil price was too high, as political unrest sweeping the Middle East continues to keep crude well into triple figures. Oil prices have risen to near two-and-a-half-year highs near $120 a barrel, spurred by concerns over political instability in the Middle East and North Africa. "We would like to see lower prices," Kuwait Petroleum Corp. Chief Executive Officer Farouk Al-Zanki told reporters on the sidelines of an energy conference in Kuwait. "This is mainly (due) to the unrest in the area and we hope it doesn't last long," he added. Fears over escalating civil unrest in the Arab world, which has seen Libya virtually halt its oil production in recent weeks as pro-democracy fighters battle those loyal to the country's leader Col. Muammar Gaddafi, has pushed up crude prices well above the $100 a barrel. In Asia, crude-oil futures opened above the $108 mark Monday and held above this level as upbeat economic data released Friday reinforced the view that the US economy is recovering and global oil demand will continue to grow even as supply tightens. But many fear a high oil price could damage the nascent global economic recovery. Oil prices closed in $120 Monday, hitting two-and-a-half-year highs on expectations of higher demand as strong US jobs data offset concerns over Middle East supplies. Brent North Sea crude reached an intra-day high of $119.75 a barrel. It later pulled back, with the May contract at $119.31, up 61 cents from Friday's close. New York's main contract, light sweet crude for delivery in May, reached $108.78 a barrel – the highest level since September 2008. It went on to stand at $108.40 at about 1140 GMT, up 46 cents from Friday. Asked how high oil could reach Al-Zanki declined to give a figure, but said it could go "very, very high." Al Zanki said Kuwait would be willing to increase its production quota, currently at 2.2 million barrels a day, "if we are instructed to do so, we have the capacity." When asked about oversupply in the oil market, Al-Zanki said there was "spare capacity available." Kuwait said it has between 600,000 and 700,000 bpd in spare production capacity, although consuming nations put the figure at about half that level. Bader Al-Khashti, chairman of Kuwait Gulf Oil Company, the KPC subsidiary that oversees Kuwait's interests in the Neutral Zone, said Kuwait's share of oil production in the Neutral Zone was currently about 285,000 bpd. Total output capacity from the area is 610,000 bpd.
