Extra OPEC output will not cut prices

Algeria's Minister of Energy and Mines Chakib Khelil ruled out the possibility of convening an extraordinary meeting of the Organization of Petroleum Exporting Countries before its Abu Dhabi conference.

The Algerian Minister said in a press conference that OPEC would not hold an emergency meeting to curb soaring oil prices, which in recent days reached 90 dollars per barrel.

Khelil also said oil markets were reacting to geopolitical tensions and failed to react to recent OPEC production increase which would be effective on the first day of next month.

Also, Iranian Oil Ministry's OPEC affairs head, Javad Yarjani, said those behind geopolitical crises were to blame for the growth of oil prices.

"Some factors are historical," opined Yarjani, noting that some limitations had been imposed on investment in oil-rich countries and some OPEC member countries had faced obstacles in the way of boosting their output.

He also named downstream sector's low capacity as another reason behind the price hike.

"The depreciation of dollar and the rush of speculators for oil market are among main factors," said Iran's OPEC affairs chief, adding giant financial centers such as pension funds picked those markets that yielded more profits.

"The upward march of oil prices, due to such non-trade activities, has been accelerated," said Yarjani, adding, "In fact, brokers and speculators have sped up oil market's developments."

"Geopolitical developments including the crisis on Iraq-Turkey border have also played their role in increasing prices. Such political crises are usually imposed from outside the Middle East, a region that holds huge oil and gas reserves." Shifting to consumer countries' stockpiles, the official added demand for oil and consumption naturally grew in the fourth quarter of the year - the cold season - and consequently stockpiles lowered.

News Agencies