OPEC sees no reason to hike output : blames high oil prices on USA

25-Jun-08

OPEC President has stated that the oil producing cartel sees no reason to raise output, as the level of oil being pumped is enough to satisfy global demand, and current levels of stock and capacity exceed requirement. The cartel instead, blames high oil prices on factors outside their control such as US pressure on Iran and the weak US dollar. OPEC also blames speculators who continue to play on the market and seek higher returns in commodities markets. In fact, the cartel feels that prices in the next few weeks depend largely on how the United States deals with Iran and the strength of the US dollar. Oil rose above $137 a barrel during trading.