ron4jesus
May 22nd, 2008, 10:52 PM
OPEC Chief: More Oil Won't Help 'Crazy' Market
Thursday, May 22, 2008 12:24 PM
QUITO - OPEC Secretary-General Abdullah al-Badri on Thursday maintained the group's stance that it can do nothing to lower oil prices in a "crazy" market despite the impact on the poor and consumer pressure for output hikes.
Blaming record prices on factors such as geopolitical tensions, speculation and the weak dollar -- and not on output levels -- he nevertheless pledged that OPEC would act to boost supply, if it were to see any shortages in the market.
"Even if we increase output tomorrow, the prices will not come down," he told Reuters during a visit to Ecuador, a member of the Organization of the Petroleum Exporting Countries.
"When we see there is a shortage of supply, we will act," he added.
World oil prices hit a life-time record for the third straight day on Thursday, topping $135 a barrel, as investors fretted over long-term supply constraints and a big drop in U.S. crude stocks.
Large consumer countries, such as the United States, have pressed OPEC to raise output to help tame prices. Washington says price increases are due to a tight supply but OPEC has largely resisted the calls for a hike.
Badri said there was currently no shortage of oil in the market and there was no need for any immediate output hike -- or even for OPEC to meet to discuss prices before its next scheduled meeting in September.
He later said at an oil conference he was "puzzled" by what was causing prices to rise because he saw no problems in the market of the fundamentals between world supply and demand.
Ecuador, which rejoined OPEC late last year, has said the group should consider raising output to help lower prices because energy costs are spurring inflation worldwide, and particularly hurting poor nations such as itself.
But Ecuador, a small player in the group, is the only member to float such an idea.
Badri, who predicted much of future oil demand would come from developing nations, said there was no need to review output levels to help poor nations.
Venezuela, Ecuador's ally and a major oil exporter, has proposed creating a fund from windfall oil revenue to help poor nations.
Thursday, May 22, 2008 12:24 PM
QUITO - OPEC Secretary-General Abdullah al-Badri on Thursday maintained the group's stance that it can do nothing to lower oil prices in a "crazy" market despite the impact on the poor and consumer pressure for output hikes.
Blaming record prices on factors such as geopolitical tensions, speculation and the weak dollar -- and not on output levels -- he nevertheless pledged that OPEC would act to boost supply, if it were to see any shortages in the market.
"Even if we increase output tomorrow, the prices will not come down," he told Reuters during a visit to Ecuador, a member of the Organization of the Petroleum Exporting Countries.
"When we see there is a shortage of supply, we will act," he added.
World oil prices hit a life-time record for the third straight day on Thursday, topping $135 a barrel, as investors fretted over long-term supply constraints and a big drop in U.S. crude stocks.
Large consumer countries, such as the United States, have pressed OPEC to raise output to help tame prices. Washington says price increases are due to a tight supply but OPEC has largely resisted the calls for a hike.
Badri said there was currently no shortage of oil in the market and there was no need for any immediate output hike -- or even for OPEC to meet to discuss prices before its next scheduled meeting in September.
He later said at an oil conference he was "puzzled" by what was causing prices to rise because he saw no problems in the market of the fundamentals between world supply and demand.
Ecuador, which rejoined OPEC late last year, has said the group should consider raising output to help lower prices because energy costs are spurring inflation worldwide, and particularly hurting poor nations such as itself.
But Ecuador, a small player in the group, is the only member to float such an idea.
Badri, who predicted much of future oil demand would come from developing nations, said there was no need to review output levels to help poor nations.
Venezuela, Ecuador's ally and a major oil exporter, has proposed creating a fund from windfall oil revenue to help poor nations.