OPEC admits limited influence on int'l oil prices

OPEC admits limited influence on int'l oil prices

VIENNA, Dec. 3 (Xinhua) -- The Organization of Petroleum Exporting Countries (OPEC), which supplies 40 percent of the world's crude oil, admitted its limited influence on the price fluctuation trend in the international crude oil market.

In a report made at the National Defense Academy of Austrian Armed Forces in Vienna on Tuesday evening, Director of OPEC Research Division Hasan M. Qabazard pointed out that recently the international crude oil prices fluctuate irregularly, on which OPEC "is able to impose no or almost no influence."


A petrol station in front of the OPEC headquarters is pictured in Vienna October 24, 2008. An emergency OPEC meeting on Friday reached swift agreement to chop production by 1.5 million barrels oil per day (bpd) as a first step toward halting a deep oil price slide.(Xinhua/Reuters Photo)


Qabazard noted that many factors attribute to oil prices fluctuation including speculation. Concerning the current oil prices decline, he believed that the economic crisis and the resulting demand decline have also "restrained" speculators to some extent.

He also predicted that the world daily consumption of crude oil may increase from 84.70 million barrels in 2006 to 92.30 million barrels by 2012, and OPEC's crude oil supply will also increase accordingly.

Therefore, OPEC will invest 126 billion U.S. dollars during the coming few years so as to increase its oil production and supply capacity. He also said that OPEC will make efforts to ensure supply in the international crude oil market.

Qabazard noted that the latest analysis made by International Energy Agency on the output shrinkage of world's existing oil field is "a little too pessimistic."

This summer, as international oil prices surged, OPEC oil prices also topped almost 141 dollars per barrel, but dived afterwards to less than 42 dollars on Dec. 12.