”Irrational” to call for more OPEC oil: President

”Irrational” to call for more OPEC oil: President

Friday, June 20, 2008
ALGIERS — Demand by consumer countries for OPEC to increase its offer of oil is “illogical and irrational,” OPEC President Chakib Khelil told the Algerian official news agency APS.
“Asking OPEC member countries to increase their offer is illogical and irrational,” Mr. Khelil told APS in an interview published on Friday.

His interview came ahead of a meeting of oil producing countries, consumer countries and oil firms in Saudi Arabia on Sunday.

“The (Saudi Arabia) meeting would clarify the positions about the reasons behind this oil prices rise,” he added.

He cited speculation, geopolitical tensions and limited refinery capacities as the “most important reasons” behind the soaring oil prices.

Mr. Khelil, who is Algeria's energy and mining minister, suggested there would be no decision by OPEC as a cartel at the meeting in Saudi Arabia.

“I'm invited as Algeria's energy and mining minister. So, I have no OPEC mandate for a position by this organization,” he said.

OPEC members who would take part at the meeting would give their views, said Mr. Khelil.
Commenting on media reports that Saudi Arabia had hiked production, Khelil said: “The media had reported a 300,000 barrel per day output increase by Saudi Arabia but its impact on the market is nil, the barrel is always at $136 (U.S.). I do not believe that is the problem.”

“OPEC's output accounts for 40 per cent of the world total production while the most big producers are the United States, Norway and Russia which are not OPEC members,” he added.

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