Politics and Production Spur High Oil Prices

A logjam in fuel production combined with political worries has resulted in oil prices running at an 11-month high. Oil ministers and officials have said this is set to continue well into the future.

The Organization of Petroleum Exporting Countries (OPEC) has issued a statement this week saying it would act if a shortage of oil spurred prices higher.

But OPEC President Mohamed Al Hamli said yesterday there was no reason to increase oil output now and Qatar's Oil Minister Abdullah bin Hamad Al Attiyah said the world is facing "a shortage of gasoline and diesel, but not crude oil".

According to NASDAQ reports, oil industry officials say there is clear evidence OPEC, which has kept a tight leash on supplies since members began implementing oil production cuts last November, is easing off the hold on prices.