Oil prices rise in London after OPEC president's comments
Oil prices rose in London on Monday despite comments from a top OPEC official, who said that the organisation would take action to ease high prices at its key summit next weekend.
Benchmark Brent North Sea crude for October delivery was being traded at 32.45 dollars a barrel in London, up from 31.95 dollars at the opening and 31.85 dollars at the close on Friday.
Prices move upwards despite remarks from Ali Rodriguez, president of the Organisation of Petroleum Exporting Countries (OPEC), who predicted firm declarations at next Sunday's summit.
"I'm convinced that we will not only see declarations but that we will see actions necessary to stabilise the market," Rodriguez said in Oslo.
Under a new price-regulating mechanism, OPEC is expected to raise production at its summit by 500,000 barrels per day, but market analysts believe that this will have little effect on prices which have climbed as high as 35 dollars a barrel.
"Demand is quite high," said Lawrence Eagles, a market analyst at GNI brokerage house. "I think oil prices will remain high ahead of the OPEC meeting."
In an interview published in the German newspaper Der Spiegel on Monday, OPEC's secretary general, Rilwanu Lukman, said that the organisation would intervene if oil prices stayed at current levels, adding that he believed 25 dollars a barrel would be a fair price.
"Prices will remain stable, unless there is a declaration from Saudi Arabia," said Leo Drollas, chief economist at the Centre for Global Energy Studies. – (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
- Oil Rises Slightly as OPEC Basket Price Drops Below Critical Level
- Oil Price Continues to Fall Following Saudi Comment
- Oil prices steady after OPEC cutback
- Betting on a self-fulfilling prophecy? Oil prices may have hit floor, can rise to $200- says OPEC top chief
- Oil Prices Defy OPEC Production Moves, Climb Higher in London, New York