Opec members ready to drive down rocketing price of oil
Hopes of a reprieve from soaring oil prices mounted yesterday as Saudi Arabia claimed fellow members of the Opec oil cartel were working on bringing down the cost of crude.
Oil continued its week-long surge yesterday, sending Brent crude above $120 a barrel and fuelling fresh concerns about the cost of petrol.
"We are seeing a prolonged period of high oil prices," the Saudi oil minister Ali al-Naimi said. "We are not happy about it. Saudi Arabia is determined to see a lower price and is working towards that goal."
Higher output from the Saudis helped to break a two-year cycle of tightening supply conditions in the oil market, according to the International Energy Agency's latest report. But Brent crude has still risen about 13 per cent this year, with oil trading above $100 for all but a handful of days, stirring fears the surging cost will threaten the global economy's recovery.
Mr Naimi's comments came as the market prepared for a crunch meeting of major powers with Iran – Opec's second-largest crude producer – this weekend to discuss export sanctions and its nuclear programme.
The oil market "has low expectations" for the meeting, Andy Lipow at Lipow Oil Associates said.
Iran's President Mahmoud Ahmadinejad said his country "will not retreat an iota" from its nuclear plans.
Concern about the tensions in Iran have supported oil prices for months, with some analysts estimating they have added $10-$15 a barrel. Other factors include concerns about a supply shortage due to production problems.
Mr Naimi tried to alleviate those fears, saying there were no supply problems in the global oil market and that Saudi Arabia was ready to use its spare production capacity if necessary.
Belle Knox: How the porn star student from Duke University became bigger than Justin Bieber
Oscar Pistorius trial: Neighbour feared athlete would use gun that killed his girlfriend Reeva Steenkamp to shoot himself
Top 10 most expensive cities in the world: Singapore named costliest place to live – but what about London?
Oscar Pistorius trial: Athlete 'cheated on me' with Reeva Steenkamp, former girlfriend Samantha Taylor tells Pretoria court
Channel 4 announces two-hour TV show to be broadcast 'Live from Space' later this month
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 The future of sex: The first female condoms were derided, mistrusted and shunned - but will their modern counterparts catch on?
- 2 South African rhino finally put down after roaming Kruger park for days with horn hacked off and bullet in brain
- 3 Italian pensioner hires an escort who turns out to be his son's girlfriend
- 4 Orgasm machine to deliver climax at the push of a button
- 5 Channel 4 announces two-hour TV show to be broadcast 'Live from Space' later this month
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...