DAVOS-Oil majors BP, Shell concerned about high oil price

Fri Jan 28, 2011 9:57am EST

Related Topics

* OPEC Sec Gen has said market has enough oil

* Demand seen rising, but no oil shortage yet

* World in a "good growth mood" says BP head

(Adds Shell CEO comments)

DAVOS, Switzerland, Jan 28 (Reuters) - Oil giants Royal Dutch Shell Plc and BP Plc fear rising oil prices may hinder the recovery of the global economy, chief executives from both firms told Reuters on Friday.

Brent crude oil was trading around $97 on Friday, while U.S. crude was around $86.

"We are concerned about the current price of oil. We don't want recovery slowed," Shell's Peter Voser told Reuters at the World Economic Forum in Davos, Switzerland.

BP's chairman, Carl-Henric Svanberg, described as "okay" oil prices in the $65-90 range.

"But if the price continues to rise, this could hurt recovery," he added.

The Organization of the Petroleum Exporting Countries has so far showed no signs of formally abandoning an output policy in place since 2008 and has not scheduled a meeting to reconsider the issue until June.

Some of its members, however, have unofficially leaked extra supply on to the market and OPEC's Secretary General Abdullah al-Badri on Thursday said he was "sure 100 percent" the market had enough oil.

Oil prices are still well below the record of $147.27 hit in July 2008, and analysts have predicted an average of slightly more than $90 for the year as a whole.

High inventories are expected to limit gains, although demand for fuel is forecast to rise, led by Asian demand.

"The world is in a good growth mood ... there's big demand for oil coming from emerging markets," said Svanberg.

That need not lead to a lack of oil, however, Voser said.

"We don't see the shortage in the market," he said, adding Shell was one of the companies still investing in new capacity.

(Reporting by Amena Bakr and Dmitry Zhdannikov; Editing by Mike Peacock, Barbara Lewis and Jane Baird)

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