OPEC President Says Raising Oil Output ‘Illogical’; Oil Prices Surge
June 20, 2008
The head of the Organization of Petroleum Exporting Countries (OPEC) says increasing oil production is “illogical.” OPEC President Chakib Khelil told the Algerie Presse Service that oil prices have been driven up by speculation and geopolitical tension.
He says he will argue against any increase in production at a meeting between oil producers and consumers Sunday in Jeddah, Saudi Arabia.
Meanwhile, oil prices in New York rebounded Friday.
The price of crude oil for July delivery gained more than $4 in early trading, before easing, after a media report that U.S. military officials said a large scale Israeli military exercise was practice for a potential attack on Iran.
On Thursday, oil prices dropped $4.75 (to settle at $131.93 per barrel) on word China was cutting fuel subsidies.
Also Thursday, Saudi Arabia announced plans to increase oil production by 200,000 barrels per day.
by VOA News
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