NEW YORK, June 17 (Reuters) - The rise in oil prices this year has not been caused by a rise in demand, the head of Italian energy firm ENI said on Wednesday.
'I don't see the consumption, I don't see the reason why oil prices should move up again,' ENI Chief Executive Paolo Scaroni told reporters during a presentation about mechanisms to reduce volatility in the oil market.
Oil prices have risen to above $70 a barrel from lows of $32.40 in December, but many analysts are concerned that the rise is more due to speculation than a true uptick in demand.
Traders say signs that the economic crisis could be bottoming out have raised some expectations that fuel demand will rebound, which has helped drive up crude prices.
Scaroni said that an oil price between $60 and $70 per barrel is, at this time, a good compromise between producers and consumers. On Wednesday, NYMEX July crude oil settled up 56 cents at $71.03 a barrel.
ENI has called for mechanisms to reduce the volatility of oil which saw it hit highs above $147 a barrel last July before dipping to December's lows.
This would involve the creation of an umbrella independent energy organisation -- a Global Energy Agency -- that would represent both consuming and producing nations, providing comprehensive data for the market and lessening the need for speculation.
(Reporting by Edward McAllister; Editing by Marguerita Choy) Keywords: ENI CEO/OIL (Edward.mcallister@thomsonreuters.com; +1 646 223 6221; Reuters Messaging:edward.mcallister.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'I don't see the consumption, I don't see the reason why oil prices should move up again,' ENI Chief Executive Paolo Scaroni told reporters during a presentation about mechanisms to reduce volatility in the oil market.
Oil prices have risen to above $70 a barrel from lows of $32.40 in December, but many analysts are concerned that the rise is more due to speculation than a true uptick in demand.
Traders say signs that the economic crisis could be bottoming out have raised some expectations that fuel demand will rebound, which has helped drive up crude prices.
Scaroni said that an oil price between $60 and $70 per barrel is, at this time, a good compromise between producers and consumers. On Wednesday, NYMEX July crude oil settled up 56 cents at $71.03 a barrel.
ENI has called for mechanisms to reduce the volatility of oil which saw it hit highs above $147 a barrel last July before dipping to December's lows.
This would involve the creation of an umbrella independent energy organisation -- a Global Energy Agency -- that would represent both consuming and producing nations, providing comprehensive data for the market and lessening the need for speculation.
(Reporting by Edward McAllister; Editing by Marguerita Choy) Keywords: ENI CEO/OIL (Edward.mcallister@thomsonreuters.com; +1 646 223 6221; Reuters Messaging:edward.mcallister.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.