Oil has more upside in 'virtual market'-Libya
Oil prices, which hit a record high last week, may have further to rise due to the element of speculation in the market, the head of Libya's OPEC delegation Shokri Ghanem said on Monday.
By Agencies |
VIENNA: Oil prices, which hit a record high last week, may have further to rise due to the element of speculation in the market, the head of Libya's OPEC delegation Shokri Ghanem said on Monday.
Oil touched a record peak of $103.05 a barrel last week, and officials from the Organization of the Petroleum Exporting Countries have blamed factors beyond its control, such as speculation and the weak dollar, for oil's record run.
"I think that the price could go up," Ghanem said. "Everything is volatile, we are in the age of volatility and speculation."
"The physical market is different from the paper market. We are living in kind of virtual oil markets."
Ghanem, who is in Vienna to attend an OPEC meeting on Wednesday, reiterated that he did not expect the group to change its oil output.
"At this level of the price, I would think that things will be postponed," he said. "It's not a good time for action. It is a time for watching."
Libya's state-owned National Oil Corporation has been signing a spate of deals with foreign energy firms to help develop its oil and gas reserves.
The OPEC oil exporter wants to become a major gas producer, and aims to increase production to 3 billion cubic feet per day (bcfd) by 2010, up from 2.7 bcfd now.
The country has no immediate plans to launch another oil or gas licensing round because it is focusing on deals that have already been done, Ghanem said.
"For the time being, we want to digest what we chew, and we did chew a lot. We have to reorganize and regroup."
"Then, we'll see whether we do something in the development or something in the exploration."
Separately on Monday, the head of the Libyan Investment Authority said that investment firm Colony Capital LLC's deal to buy a controlling stake in Libya's European oil refining and marketing firm Tamoil will not go ahead.
Colony said last year it agreed to buy the stake in a deal that would have marked the second major foray by private equity into the European oil refining business in recent years.
Oil touched a record peak of $103.05 a barrel last week, and officials from the Organization of the Petroleum Exporting Countries have blamed factors beyond its control, such as speculation and the weak dollar, for oil's record run.
"I think that the price could go up," Ghanem said. "Everything is volatile, we are in the age of volatility and speculation."
"The physical market is different from the paper market. We are living in kind of virtual oil markets."
Ghanem, who is in Vienna to attend an OPEC meeting on Wednesday, reiterated that he did not expect the group to change its oil output.
"At this level of the price, I would think that things will be postponed," he said. "It's not a good time for action. It is a time for watching."
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Libya's state-owned National Oil Corporation has been signing a spate of deals with foreign energy firms to help develop its oil and gas reserves.
The OPEC oil exporter wants to become a major gas producer, and aims to increase production to 3 billion cubic feet per day (bcfd) by 2010, up from 2.7 bcfd now.
The country has no immediate plans to launch another oil or gas licensing round because it is focusing on deals that have already been done, Ghanem said.
"For the time being, we want to digest what we chew, and we did chew a lot. We have to reorganize and regroup."
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"Then, we'll see whether we do something in the development or something in the exploration."
Separately on Monday, the head of the Libyan Investment Authority said that investment firm Colony Capital LLC's deal to buy a controlling stake in Libya's European oil refining and marketing firm Tamoil will not go ahead.
ADVERTISEMENT
Colony said last year it agreed to buy the stake in a deal that would have marked the second major foray by private equity into the European oil refining business in recent years.
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