Mumbai: Oil prices at $60 a barrel are still "very healthy", a top official of Saudi Arabia's central bank said yesterday.
Oil prices have eased from a record $78.40 a barrel in July, providing relief to importing nations around the world. Prices fell to six-month lows under $60 a barrel on Monday, and were trading around $61.50 yesterday.
"Even at $60 a barrel, oil is still at a very healthy price," Saudi Arabian Monetary Agency (Sama) Vice Governor Mohammad Al Jasser said on the sidelines of a banking conference. "Basically we have no problem with what has happened because it is the market doing what it does best.
"We have always said the risks from geopolitical uncertainty are impacting the price. Now those seem to be easing," he said.
Al Jasser declined to comment on Saudi interest rates, and said he was not concerned by an increase in domestic inflation.
"Our inflation is not picking up," he said. "Two per cent is the envy of everybody. That's not a worry."
Saudi Arabia usually follows the US Federal Reserve's rate moves closely, as its currency is pegged to the US dollar, but there has been speculation that inflation and strong growth could make Sama raise rates even though the Fed has held interest rates steady at its last two meetings.
Al Jasser said Sama was not worried about the initial signs of a slowdown in the US economy.
