OPEC To Maintain Oil Production

OPEC Secretary General Abdullah al-Badri has told French news agency AFP that high oil prices are not caused by a shortage of oil supplies and that the organisation would not be raising production at this time.

"Let me be clear, the high prices which we are witnessing are not because of any shortage of crude oil in the market," Badri says.

"I would like to reiterate that this price trend is a consequence of persistent geopolitical tensions, the weakening of the US dollar, ongoing limitations and restraints in the US refining system and the increasing role of speculators in the oil market."

Badri went on to say that OPEC was "constantly monitoring" the oil market and the organisation would be ready to raise production, should it be needed.

The news comes amid speculation of a possible hike in oil production following US President George Bush's meeting with Saudi King Abdullah this week.

Following the meeting, Whitehouse spokeswoman Dana Perino announced there was "hope" that OPEC would authorise an increase in production.

By staff writer