Opec blames speculators for high oil prices
High oil prices linked to speculators says Opec
Monday, 21, Apr 2008 03:36
Opec secretary general Abdalla Salem El-Badri has blamed speculators for the high price of crude oil.
Crude-oil prices have consistently been hitting record highs recently, as financial turmoil and a weak dollar encourage investors to pour money into the crude oil futures markets, Mr El-Badri told the International Energy Forum in a speech.
He said: "[Volatility] continues to have a serious impact on the oil market, together with the persistent upward pressure on prices.
"The heightened levels of speculation have been a principal driving force behind the volatility, with oil becoming a financial asset.
"We welcome recent moves by many industrialised countries and key intergovernmental bodies to address the financial turmoil and help reduce speculation," he added.
Geopolitical developments and bottlenecks in the refinery sector have also had an effect, Mr El-Badri said.
A series of incidents at refineries around the world have contributed to the rise in oil prices.
Last week, reports of production outages in Mexico, due to bad weather, and Nigeria, due to a fire, raised concerns over supply. In addition, oil giant Shell said shipments in the southern US had been disrupted.
In addition, Shell's pipeline in Nigeria was attacked by militants on Friday.
Light, sweet crude for May delivery touched $117.05 (£59) in early trading on the New York Mercantile Exchange – a new high.