OPEC Sees No End In Oil Price Rise

Wednesday, August 24, 2005

Inadequate refining capacity and geopolitical issues will propel record crude oil prices even higher, OPEC's secretary general Adnan Shihab-Eldin said in an interview with the Austrian daily "Kurier" on Wednesday. "Oil prices will not remain high, they will rise further," he said, adding that the little slack between supply and demand has led to a "fear premium" that falls and rises in the wake of any news about a change in supply. Shihab-Eldin said that OPEC members will be able to increase their daily production from a current level of 30.3 million barrels per day (bpd) by ten percent to 33 million bpd by the end of 2006. By the end of the decade OPEC should be able to pump 38 to 39 millions barrels per day, he said.
Approaching the colder season the OPEC secretary general sees little chances for oil prices to turn south as the bottleneck in refining is here to stay for some time. In addition to this he pointed out that growth in Russian oil production will fall to 100,000 bpd this year after Russia ramped up its production by 700,000 bpd last year.

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