The current oil price has far exceeded its real value, and governments and enterprises should work together to tackle this issue, senior officials and energy tycoons attending an Asian-oriented forum said on Saturday in Boao.

"The current price is much higher than it should be, since there is not a real crude oil shortage in the world market," said Zhang Guobao, vice minister in charge of China's National Development and Reform Commission (NDRC).

The price of crude oil is "likely to climb a little higher" amid concerns about Iran's nuclear ambitions, Zhang forecast at the on-going annual meeting of the Boao Forum for Asia (BFA) in China's southernmost province of Hainan.

The oil price was over 70 U.S. dollars a barrel early this week. In just five days, the prices hit a new high of over 75 U.S. dollars a barrel.

"Forty U.S. dollars per barrel is a reasonable price, taking into consideration production costs, supply and demand, trading and speculation activities," said Don Voelte, managing director and chief executive officer (CEO) with Woodside Energy Ltd., a key oil and gas manufacturer based in Australia.

Voelte said such a price would contribute to the sustainable development of the international oil market, while unreasonably high prices will impair the world economy in the long run.

Few countries or regions have gained advantages in terms of energy costs over the past several years, according to Utz-Hellmuth Felcht, chairman and CEO with Degussa AG, a chemical industry giant in Germany.

The key problem is not the price, but its fluctuation and unpredictability, which baffles the decision-makers both in the government and energy-related enterprises, Felcht stressed.

Governments and enterprises, who share common interests in the energy sector, should deal with the challenge through negotiations and cooperation, suggested Tae Won Chey, chairman and CEO of Korean SK Corp.

A high crude oil price is both a challenge and an opportunity, as it will push forward the technological innovation on energy replacement and conservation, Zhang noted.

At a recent meeting on energy development, Chinese Premier Wen Jiabao called for greater efforts to develop renewable energy, save energy resources and update energy-related technologies, which have been listed as China's prior energy tasks for the year.

Source: Xinhua