Saudi Arabia, Opec’s largest producer, moved to take some of the heat out of rising fuel prices on Sunday with plans to increase production.
Organisation of the Petroleum Exporting Countries (Opec) president Chakib Khelil reiterated on Saturday that Opec would not make a decision on output policy before its next scheduled meeting in September, and said oil-market fundamentals were not responsible for high oil prices.
Oil markets are well supplied and high prices are the result of speculation, a weak dollar and geopolitical problems, Organisation of the Petroleum Exporting Countries (Opec) president Chakib Khelil said on Monday. ”As for Opec, indications show that there is no shortage [of supply],” he told a public forum on energy.
Oil hit a new record near a barrel on Monday, boosted by a string of bullish factors that include a United Kingdom refinery strike and disruptions to Nigeria’s output that highlight the market’s anxieties over threats to supply. Prices held firm below earlier highs, despite a rally in the US dollar versus the euro and yen.
Crude oil prices surged above , setting a new record high on Monday because of worries of supply disruptions from major producers and comments by the Organisation of the Petroleum Exporting Countries (Opec) reiterating there is no need to raise output.
Ministers of the Organisation of the Petroleum Exporting Countries (Opec) on Wednesday agreed to keep oil output steady and said record high prices had been driven by factors that were beyond their control. United States crude hit a record of ,95 a barrel on Monday and was trading above on Wednesday.
Opec ministers are poised to hold output steady at a meeting on Wednesday, resisting pressure from top consumer the United States to pump more oil to help prop up a fragile economy. Opec has said triple-digit oil has been driven by factors beyond its control, such as a weak dollar and speculation and not by any lack of fuel.
Oil eased on Tuesday after it reached a record of almost a barrel in the previous session, buoyed by investor demand for commodities as well as expectations Opec will not increase supply despite high prices. United States light crude for April delivery was down 44 cents at ,01 a barrel by 10.30am GMT, after touching a record high of ,95 on Monday.
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/ 31 January 2008
The Organisation of the Petroleum Exporting Countries (Opec) on Thursday looked set to rebuff consumer calls for more crude oil, saying it was powerless to help stave off recessionary pressures in the West. Enjoying a sixth year of crude price gains, Opec argues it can do little to help avoid a slowdown in the United States, its leading customer.
World oil prices eased further from the historic $100-a-barrel level on Monday after weak US employment data fanned worries about recession and demand in the world’s biggest energy consumer, dealers said. In afternoon trade, New York’s main contract, light sweet crude for delivery in February, was 71 cents lower at $97,20 a barrel.