Current oil prices are not a reflection of market fundamentals but a result of speculation and other factors, chief of the Organization of the Petroleum Exporting Countries (OPEC) said in NIcosia Wednesday.
Oil prices have been disconnected from market fundamentals such as demand and supply, OPEC Secretary-General Abdalla Salem al-Badri told reporters after talks with Cypriot President Tassos Papadopoulos.
"The market is really influenced by other factors," said al-Badri. "I have said that many times and I will say it one more time: this is because of the U.S. dollar value, the subprime mortgage problems, the geopolitical situation and above all speculators."
But he did not rule out the possibility of a production increase, if the market justifies it.
"When the market justifies an increase in production, every country will contribute to that increase," added al-Badri.
He said oil stocks in member countries of the Organization for Economic Cooperation and Development (OECD) are within the five-year average, not as low as some people have imagined.
Al-Badri said a report would be prepared ahead of February's OPEC ministers' meeting, which would decide whether to increase output.
"We will examine the supply and demand and the stocks. We will take into account the world growth. And we will prepare our report and give it to the ministers," he said.
"I'm sure that the (OPEC) ministers, in the conference, will not be hesitant to increase the production, if fundamentals justify that," al-Badri said.
Source:Xinhua
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