NEWS | Wednesday, 05 March 2008

Opec dashes oil supply rise hopes

The head of Opec, the cartel of oil-producing nations, has said it is unlikely to increase production at this week’s meeting.
It had been hoped members would boost the supply of oil to help prices fall from their historically-high levels.
The price of a barrel of oil reached another record of almost $104 during trading on Monday in New York.
Oil ministers from Opec member nations are gathering in Vienna ahead of their meeting which starts on Wednesday.
“I don’t think Opec would consider increasing production because then we would be increasing to meet a demand that doesn’t exist,” Opec President Chakib Khelil said.
US government data, due on Wednesday, is expected to show it has a good supply of crude oil and domestic fuel.
Oil prices have risen to record highs due to high demand for the commodity and the weakening dollar, which has prompted investors to switch to oil and other reputed safe havens such as gold.
US light, sweet crude jumped to $103.95 a barrel on Monday, before giving back some gains to trade at $102.45.
In London, on Tuesday morning, Brent crude fell 36 cents to $100.12.