Top OPEC official says price of oil is too cheap

updated 3:09 p.m. ET April 26, 2009

ALGIERS, Algeria - OPEC Secretary General Abdalla el-Badri has warned that oil prices of $50 per barrel are "insufficient for continued investment" and urged a $70 barrel.

El-Badri says his organization will take into consideration signs of economic recovery in any decisions on possible production cuts at a meeting in May.

Speaking Sunday in Algiers, he said current prices, which have hovered between $40 and $50 this year, are too low for investment, presumably referring to the cost of drilling infrastructure. He said a $70 barrel would be "acceptable and reasonable for the organization" but added it was up to the market to set the price.

Algeria's Energy Minister Chakib Khelil, also speaking Sunday, predicted the barrel would hit $60 by the end of 2009.