The oil price should be 5 to 8 US dollars less than the current level, the chief of the Organization of the Petroleum Exporting Countries (OPEC) said Thursday.

Sheikh Ahmad Al-Fahd, also Kuwaiti energy minister, was quoted by the official KUNA news agency as saying that oil supplies are adequate to meet the market demand, so the increase in oil price is rather related to "psychological fear of the market."

"Geopolitical reasons and environmental issues are also behind the current price hikes," he added.

Sheikh Ahmad said OPEC is doing its best to ensure the stability of oil price, adding OPEC can maintain the current supplies and cope with emerging markets like India and China.

Oil price is currently fluctuating between 54 and 55 dollars per barrel.

The chief made the remarks ahead of a meeting between OPEC and the European Union (EU) in Brussels, Belgium.

"It is important to start a dialogue with the EU," Sheikh Ahmad said, adding opening a channel for communication and dialogue will benefit both OPEC as an oil exporter and the EU as an importer.

The meeting will focus on recent developments in the oil market, energy policy and oil-related technology.

Source: Xinhua