Oil price edge upward despite anticipated Saudi production increase

(MEBG) - Oil prices moved upward slightly on July 14 as the Opec delayed further a decision on the delivery of extra supply. International benchmark Brent crude for September delivery settled six cents firmer in London at $29.22 a barrel.  

Opec will not meet until the end of July to trigger the extra supply under an informal production mechanism agreed by ministers last month.  

Addressing the issue, Opec President Ali Rodriguez declared that "no, we are not to increase production at this moment." He said that Opec has a mechanism to deal with the problem, and at the end of July or beginning of August a decision will be taken. 

According to the Opec president: "The Saudi minister has a compromise with Opec and he told me that he would not go for a unilateral decision." 

Many in the oil market remain confident that Saudi Arabia will honor its pledge, but a lack of tangible evidence has prodded prices higher again following an initial slump when Riyadh announced its production plan.