Reuters reported that oil prices may be USD 20 off April's USD 127 per barrel peak but there is no panic in Riyadh, Kuwait City or Abu Dhabi. As per report, oil policy officials in the capitals of OPEC's Gulf Arab price doves Saudi Arabia, Kuwait and the UAE are relaxed and won't be losing sleep if prices fall further. One senior official in the region said that those producers are unlikely to reduce supplies to try to stem a decline in oil prices unless crude falls below USD 90 per barrel for a sustained period. Others did not specify an ideal price range but said they would maintain high output and could tolerate a further decline in prices. Brent crude traded around USD 107 has fallen some USD 15 since the start of August as the economic outlook darkened and following the release of strategic consumer reserves and extra supplies from Gulf OPEC producers in June. The prospect of Libyan oil returning to the market after a first post war cargo shipped on Tuesday is also beginning to weigh on prices. Libya is hoping to restore full output in 12 to 15 months.

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