World's Energy

08 May 2008 - Upstream OnLine - Opec is refusing to pump more oil into world markets despite member nations’ calls to increase supply to curb skyrocketing prices. The organization did say it is willing to supply more oil if demand calls for it. The 13-member organization holds more than 3 million barrels per day of spare production capacity for use if needed, but Saudi Arabia is the only member able to raise production significantly at short notice. After Opec’s statement, oil dropped to $122 after hitting a record of about almost $124 today. The United States, the world’s top oil consumer, has repeatedly called for more oil from OPEC, and US President George W. Bush is expected to do so again during a visit to Saudi Arabia next week. Opec defended its position by claiming that oil prices are affected by other factors besides just supply and demand. “The turmoil in some global equity markets and the considerable depreciation in the US dollar have encouraged investors to seek better returns in commodities, particularly in the crude oil futures market,” Adbullah Badri, the group’s secretary general, told Reuters. “This has driven prices higher.”