Oil prices rise to US$132 in Asia

11-Jun-08

New York's main oil futures contract, light sweet crude for July delivery, rose to US$132.00 per barrel. Oil prices rose even as the world's biggest oil producers and consumers get ready to meet to discuss record crude prices that continue to fuel fears for the global economy. Analysts feel the reason for the meeting was to show that OPEC states were not responsible for the price surge. OPEC maintains that the oil market is well supplied and current prices do not reflect the market fundamentals of supply and demand. The meeting will be held on June 22 in the Saudi city of Jeddah. Among the invitees will be several European countries, the European Commission, the International Energy Agency (IEA - the energy watchdog for industrialised countries) and the heads of investment banks Morgan Stanley and Goldman Sachs, along with the United States. Before the Jeddah meeting, finance ministers from the Group of Eight (G8) rich nations will gather in Japan this weekend to discuss ways to limit the economic damage of soaring oil prices.