(MEBG ) - Oil prices rose to record levels in the United States, following an announcement by Opec that its member countries would not pump more crude oil. Accordingly, the Clinton administration has issued a plea to Opec to reconsider its action.
Addressing the issue, White House spokesman Elliot Diringer said: "We've asked the Opec nations to keep an open mind about increased oil production, and we continue to believe an increase is good for both producing and consuming nations."
Opec’s latest action came in apparent defiance of Washington, which had eagerly awaited the organization's expected production increase of 500,000 bpd. But instead, Opec President Ali Rodriguez announced in Caracas that there would be no oil output rise this month because oil prices had fallen below the $28 a barrel price band. As a result U.S. oil futures prices soaring by $1.11 a barrel to close at $31.94 a barrel, up nearly 4 percent.
U.S. Energy Secretary Bill Richardson said that the markets have indicated that crude oil and gasoline stocks are too low, and the administration wants to make sure there are adequate home heating oil inventories going into the winter.
© 2000 Mena Report (www.menareport.com)
