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KUWAIT CITY - OPEC president Chakib Khelil said on Sunday that the oil-producer cartel should not increase output now because the market was well-balanced.
'There is no need for Opec to raise its production now ... Any increase in output will not affect oil prices because there is a balance between supply and demand,' Mr Khelil said in comments cited by the KUNA news agency.
Mr Khelil, who is also Algerian Energy Minister, is in Kuwait as part of a delegation accompanying the Algerian president.
'We raised production last year and prices continued to rise ... If we raise output, we will not find buyers for the increase,' he said.
On Friday, New York's main oil, light sweet crude for delivery in May, surged US$1.83 (S$2.48) higher to a record close of US$116.69 a barrel. It had earlier hit an intraday all-time peak of 117 dollars.
Mr Khelil however said that the 13-member Opec has the ability to boost production by two million barrels per day.
'Most of the increase would come from Saudi Arabia which has an actual capability to boost production. Countries like Algeria, Libya, Venezuela and Nigeria can also contribute to the increase,' he said.
He attributed high oil prices to the US economic crisis and the decline in the value of the dollar.
'When the dollar drops one per cent, oil prices rise four dollars a barrel,' said Mr Khelil and added that if the US economy improves by the year end or early next year 'it could push oil price to decrease.' -- AFP
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