OPEC Says World Oil Supply is 'Plentiful'

OPEC has announced there is no shortage of oil in world markets, but is ready to act should supplies show signs of running dry.

In a statement issued yesterday, OPEC Secretary General Abdalla Salem El-Badri said OECD commercial stocks remain above the five-year average, with rising US crude inventories indicating that supplies are "plentiful".

El-Badri says OPEC has increasing spare capacity, currently standing at above three million bpd, with the thirteen OPEC member countries producing more than 32 million bpd.

"OPEC will continue to be proactive and monitor these developments closely. The organisation stands ready to act if the market shows a need for any further measures," he adds.

The statement follows crude oil prices hitting record highs of US$123.93 a barrel on Wednesday as well as renewed calls from the US for OPEC to raise production levels.

Oil prices today hit close to US$125 a barrel, with US crude oil trading at around US$124. London Brent crude prices rose 85 cents to US$123.69 per barrel.

By Ozge Ibrahim