No need for OPEC to hike output at next meeting: Algeria's Khelil

Washington (Platts)--16May2006

OPEC does not need to increase production at its next meeting in Caracas
on June 1 because it is geopolitical concerns, not a lack of oil, that is
keeping prices at current high levels, Algerian Oil Minister Chakib Khelil
said Tuesday.

"I doubt adding any more oil is going to help" lower prices since there
is "plenty of oil on the market," Khelil told reporters on the sidelines of a
US-Algeria Business Council energy conference in Washington.

Khelil said extra oil is "not needed" and that Gulf nations would have to
offer "deep discounts" to find a market for additional supplies. "Gulf
producers are not getting $69, $70 a barrel. They are getting much, much lower
than that," he said.

Khelil blamed strong prices mainly on geopolitical concerns and also on
demand as the US moves into its summer driving season. Concerns about another
US hurricane potentially disrupting supply this summer also has contributed to
market jitters and lifted prices, he said.

"Tension around the world is the main actor on prices," Khelil said. Only
an easing of geopolitical tensions and lower demand will bring down crude oil
prices, not extra supply, he said.

--Cathy Landry, cathy_landry@platts.com

For similar news, take a trial to Platts Oilgram News at
http://oilgramnews.platts.com.


 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.