OPEC president Chakib Khelil says it is ‘illogical and irrational’ to think increasing oil output would ease off soaring prices. “To ask the oil producers to increase their output is illogical and irrational,” Khelil was quoted as saying the Algerie Presse Service (APS) news agency on Friday.
Khelil, who also serves as Algeria’s Minister of Energy and Mines, made the remarks ahead of a Sunday meeting of oil producers and consumers. The meeting, on record high prices, will convene in Jeddah.
“Saudi Arabia decided to hold this meeting between oil producers and consumers, as well as oil companies, in order to determine the causes behind rising oil prices,” he added.
The Jeddah meeting comes only days after oil prices skyrocketed to new record highs just short of 140 dollars per barrel following Israel’s threats of waging war on Iran if Tehran refuses to suspend its nuclear program – which is aimed at generating electricity.
The Algerian minister said oil is being driven higher by factors other than supply alone. Analysts believe the oil prices are affected most notably by speculation and a falling dollar.