OPEC: Saudi to boost oil output

OIL IS NOT WELL: The differences in the body of oil producers came to the fore on Sunday.

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New Delhi: It has fuelled protests across the world and now rising oil prices are causing heartburn within the Organisation of the Petroleum Exporting Countries (OPEC).

The differences in the body of oil producers came to the fore on Sunday at a meeting called by Saudi Arabia, in view of demands by oil consumers to increase production.

Speaking at the meeting, Finance Minister P Chidambaram said the prices have increased not because of a rise in demand.

Calling for a fixed price band, he said, “Consuming countries must guarantee that oil prices will not fall below an agreed level and producing countries must guarantee that oil prices will not rise above a guaranteed level.”

Countries like China and Britain stressed on the need to find new sources of energy. But they were all unanimous on one issue – oil prices have to come down.

Saudi Arabia's King Abdullah, who had called the meeting, announced his country would increase production from 90 millions barrels a day to 90.7 million barrels and unveiled other measures too.

Saudi King Abdullah said, “I announce a contribution of 500 million American dollar to the developing countries to enable them to get the energy they needed. We need to have a humanitarian vision, free of selfishness and narrow mindedness and focus on cooperation to control the global oil market. This is the secret of success.”

OPEC President Chakib Khelil however chose to differ and claimed there was enough oil in the market to meet the demand.

He said OPEC will consider the issue of raising production only in September, when they meet. With OPEC refusing to increase production, the world it seems will have to bear with the rising fuel prices.