KUWAIT - OPEC President Sheikh Ahmad al-Fahd al-Sabah said on Monday he will propose the cartel raise its output by 500,000 barrels per day when the group meets in September in an attempt to help cool oil prices at record highs.
Sheikh Ahmad, also Kuwaiti oil minister, said he will also propose a 500,000 bpd increase in the group’s official output ceiling at the Sept. 19 meeting.
“We hope that the resolution to the board to increase production and the ceiling, 500,000 (bpd) and 500,000 (bpd), and to refresh the dialogue with all the main consumers, I hope this will at least help the market and the prices to be more stable,” Sheikh Ahmad told reporters.
Oil prices hit a record $70.80 a barrel on Monday as Hurricane Katrina headed towards U.S. oil and gas production in the Gulf of Mexico.
Prices eased from that peak to around $69, but Sheikh Ahmad’s comments failed to bring them lower still.
“The market is well supplied,” Sheikh Ahmad said. “There is about or over one million bpd (oversupply) in the market.”
“If we talk about demand and supply and other economic factors I don’t think prices will reach $100 or even deserve to be near $70,” he said.
“But if we talk about other issues or realities which play a role in the price increases like geopolitics, refinery problems or psychological problems...then prices may cross $100.”
why not the government will do something to make or look for other solutions so that the oil price will not be too expensive...have other options..
Posted by: scoremore | October 06, 2010 at 10:51 AM