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LONDON: Oil prices jumped beyond $141 a barrel on Tuesday after the
president of OPEC said there was uncertainty surrounding future
investment in facilities to boost crude output.
New York’s main oil contract, light sweet
crude for August delivery, was up $1.40 at $141.40 a barrel at about
4:20 p.m. Manila time.
Brent North Sea oil for August delivery climbed
$1.50 to $141.33 a barrel.
On Monday, crude futures had struck record-high
levels close to $144, as the US currency remained weak against the
euro, traders said.
Brent soared to an all-time high of $143.91 and
New York crude to a historic peak of $143.67.
On Tuesday the president of OPEC, Chakib Khelil,
said the oil producers cartel had concerns about future demand that
led to uncertainty investing in capacity to increase production.
“The concern we have is about the security of
demand,” Khelil, who is also Algeria’s energy minister, told an
energy conference in Madrid.
He told the World Petroleum Congress that there
were “big uncertainties” about making huge investments in
infrastructure to increase output from members of the Organization
of Petroleum Exporting Countries or OPEC, which pump about 40
percent of world oil. (See related story B2.)
Global oil prices have doubled in the past year
and have risen by almost 50 percent since the start of 2008, when
they breached $100 for the first time, triggering fears over
inflation and slower economic growth.
Consumer countries blame record prices on tight
supplies amid strong demand and unrest in producer countries such as
Iran, Iraq and Nigeria. In particular, they accuse OPEC of not
producing enough crude.
The 13-nation cartel, however, insists that the
weak US currency is at fault, as it drives up demand for
dollar-denominated oil from foreign buyers.
-- AFP
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