OPEC secretary general Abdalla Salem El-Badri said Friday he expected oil prices to rise to $70-75 per barrel by the end of this year. “If this current trend continues, if recovery as we see it coming (materializes), we see a range of $70-75 by year-end,” the oil cartel chief told reporters here. Oil prices rose in Asian trade Friday to above six-month highs on an unexpectedly big drop in US crude reserves. Oil rose to a six-month high above $66 per barrel on Friday, on track for its largest monthly percentage gain in more than a decade, after Japanese and US data suggested the economic downturn may be moderating. Oil prices have jumped around 30 percent this month, buoyed by expectations of a global economic recovery later this year and a bullish price outlook from key OPEC member Saudi Arabia. It is the largest monthly price rise since March 1999. Oil rose to a six-month high above $66 per barrel on Friday, or around 30 percent jump this month – the largest monthly rise since March 1999 – after US, Japanese and Indian data suggested the economic downturn may be easing. US crude oil for July delivery settled up $1.23 at $66.31, its highest settlement since Nov. 4, after earlier hitting $66.47, the highest intraday trade since Nov. 5. London Brent crude settled up $1.13 at $65.52, its highest settle since Nov. 4. The dollar hit a five-month low against a basket of other currencies. A weak dollar makes oil cheaper for holders of other currencies and tends to support prices. Crude prices have surged in recent days due to growing optimism that energy demand would pick up on hopes the US economy is on the mend. OPEC had decided to leave output unchanged, despite a glut of crude worldwide. “That was an excellent decision. I am very happy with it,” El-Badri said. He was “optimistic” about the prospects of recovery, he said. “There's some light at the end of the tunnel, but it's still a very weak light. We have to see demand change before we take any action.” Asked whether the OPEC had come to an end of its cycle of output cuts, El-Badri said “I can't say we've finished. We have to wait and see the situation on the market” at the time of the cartel's next meeting in September in Vienna. If global oil stocks were reduced to such an extent that so-called “forward cover” were to fall below 52 days and prices were high, “OPEC will take action to remedy that,” El
