Oil prices surge after OPEC predicts new record highs
Oil prices soared after the president of OPEC, Algerian Energy Minister Chakib Khelil, said crude could hit a record USD 70 this year owing to a weak US currency and geopolitical unrest.
By Agencies |
LONDON: Oil prices soared today after the president of OPEC, Algerian Energy Minister Chakib Khelil, said crude could hit a record USD 70 this year owing to a weak US currency and geopolitical unrest.
Last week, oil hit historic highs just short of USD 140. New York's main oil futures contract, light sweet crude for August delivery, was up USD 3.79 at USD 138.34 per barrel at about 2000 IST, recouping all the ground lost yesterday after US stockpile figures.
Brent North Sea crude for August jumped USD 2.84 to USD 137.17.
Prices, which tumbled USD 3.50 yesterday, were up by about 50 cents today before Khelil's comments, supported by a weak dollar and risks of unrest in producer countries, analysts said.
"I predict probably prices of 150 to 70 dollars this summer," Khelil said today in an interview with France 24.
"It (the market) will probably fall a bit towards the end of the year."
The OPEC president added that a weak dollar was the main cause of surging oil prices. A struggling US currency makes goods priced in the dollar cheaper for foreign buyers, thus pushing up demand.
Khelil also cited Western "threats against Iran" over its nuclear projects as a key reason for prices spiking on world markets. Oil prices have doubled in just one year.
"If (the threats) increase, I think the price of oil will rise further this summer as it would coincide with stronger demand for gasoline (petrol), particularly in the United States," added Khelil.
Last week, oil hit historic highs just short of USD 140. New York's main oil futures contract, light sweet crude for August delivery, was up USD 3.79 at USD 138.34 per barrel at about 2000 IST, recouping all the ground lost yesterday after US stockpile figures.
Brent North Sea crude for August jumped USD 2.84 to USD 137.17.
Prices, which tumbled USD 3.50 yesterday, were up by about 50 cents today before Khelil's comments, supported by a weak dollar and risks of unrest in producer countries, analysts said.
"I predict probably prices of 150 to 70 dollars this summer," Khelil said today in an interview with France 24.
"It (the market) will probably fall a bit towards the end of the year."
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The OPEC president added that a weak dollar was the main cause of surging oil prices. A struggling US currency makes goods priced in the dollar cheaper for foreign buyers, thus pushing up demand.
Khelil also cited Western "threats against Iran" over its nuclear projects as a key reason for prices spiking on world markets. Oil prices have doubled in just one year.
"If (the threats) increase, I think the price of oil will rise further this summer as it would coincide with stronger demand for gasoline (petrol), particularly in the United States," added Khelil.
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