Opec secretary general Abdullah al-Badri on Tuesday appealed for calm, saying the record-high oil price was unbearable and did not reflect any shortage of supply in the market.
The comments are the latest to underscore the view of the Organisation of the Petroleum Exporting Countries (Opec) that it is pumping more than enough oil and high prices reflect factors beyond its control.
”I ask through you, through Reuters, really we need some calm. We are panicking too much,” Badri told the Reuters Global Energy Summit.
”The situation is unbearable as far as we are concerned. I want to say, there is no shortage now and in the future.”
Saudi Arabia, the world’s top exporter and Opec’s most influential member, said on Monday it would soon call for a meeting to discuss what it called unjustified rises in prices.
Badri supported holding such a meeting, which he said might happen before the next scheduled Opec gathering on September 9.
He also said he hoped that measures could be taken to curb speculation in the oil market, a factor Opec believes is inflating prices to levels not justified by supply and demand.
”We are not happy with the current level of price for one reason. It has nothing to do with the fundamentals,” he said.
”Speculators are playing a big role in high oil prices. Also there are other considerations, the value of the dollar and the geopolitical situation.”
Opec, which pumps about two in very five barrels of oil, was willing to raise production if needed, although there was no demand for extra barrels.
”Nobody is asking for oil at this time. We are checking with our member countries. There is no queue for oil,” he said.
Iran welcomes talks
Iran on Tuesday gave a cautious welcome to the Saudi call for talks with consumer nations on soaring oil prices, saying it could be useful as long as the meeting examined the root causes of high prices.
”It could be useful if we delve into the root cause of the market problems,” said Iran’s Opec envoy Mohammad Ali Khatibi.
”They [major oil consumers] should change their approach to solve the problems instead of threatening confrontation and using levers such as sanctions and occupation,” he added. — Reuters, AFP