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Sunday, September 07, 2008
Sunday, September 07, 2008
Supply Chain Management (SCM) News
Posted: Wednesday, June 25, 2008, 1:43PM
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All hands to the pump after Opec refusal
Opec has dampened speculation that it will increase its oil production, claiming that high prices are not down to any issues with supply.Speaking after a meeting with the European Union, Opec president Chakib Khelil, blamed the soaring cost of crude as the weak US dollar and increased American pressure on Iran.
Khelil said that the oil cartel was pumping enough oil and that the organisation had both stocks and extra capacity to spare.
"As far as fundamentals are concerned I think we have equilibrium between supply and demand," he added.
"I think the market is probably waiting to see how the dollar is going to evolve in July, how the geopolitical situation is going to evolve with the threats made on Iran," he said.
His comments come despite a pledge from Saudi Arabia to increase its daily output by 70,000 barrels a day from July.
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