OPEC might not increase production in coming months
Friday, 22 June 2007
VIENNA, June 21 (AFP): OPEC Secretary-General Abdullah al- Badri hinted Tuesday that the Organization of Petroleum Exporting Countries might not boost oil production in the coming months, saying that market fundamentals were currently balanced.
"At the moment prices are around 72 dollars (per barrel) but for the year the average is about 62.57 dollars" in London for Brent North Sea crude, Badri told AFP in an interview at the organisation's headquarters in Vienna, adding "(the) fundamentals are balanced."
"If we see change in the fundamentals and price changes for a reasonable time... of course OPEC will react," he nonetheless added.
On Monday, oil prices reached 72.25 dollars in London, a level last seen on August 28, 2006, while in New York, the barrel price surged as high as 69.15 dollars, the highest point since September 1. Prices dipped a bit Tuesday.
The oil market is currently under strain owing to low US gasoline reserves ahead of the driving season, when demand for petrol spikes as Americans take to the roads for their summer vacations.
"At the moment prices are around 72 dollars (per barrel) but for the year the average is about 62.57 dollars" in London for Brent North Sea crude, Badri told AFP in an interview at the organisation's headquarters in Vienna, adding "(the) fundamentals are balanced."
"If we see change in the fundamentals and price changes for a reasonable time... of course OPEC will react," he nonetheless added.
On Monday, oil prices reached 72.25 dollars in London, a level last seen on August 28, 2006, while in New York, the barrel price surged as high as 69.15 dollars, the highest point since September 1. Prices dipped a bit Tuesday.
The oil market is currently under strain owing to low US gasoline reserves ahead of the driving season, when demand for petrol spikes as Americans take to the roads for their summer vacations.