Opec president Chakib Khelil said on Saturday he expected oil prices to keep rising during the first quarter of this year before stabilising in the following quarter.
"The rise is likely to continue until the end of the first quarter 2008 and will stabilise in the second quarter," Khelil, who is also Algerian Energy and Mines Minister, told the Algerian official news agency APS. He linked the steady rise of oil prices to "political tension in Pakistan, escalating violence in Nigeria and a decline of oil inventories in the United States", APS added.
Oil in New York hit $100 a barrel on Wednesday, the first trading day of the new year. In further comments relayed by Algerian state radio, Khelil said Opec''s next meeting would closely study forecasts for world economic growth, particularly those of the United States, which has been seriously affected by the subprime mortgage crisis.
The world market had sufficient oil supplies for now and no decision could be made to increase production before the next Opec conference, it cited him as saying. The Organisation of the Petroleum Exporting Countries is scheduled to meet next on February 1 in Vienna. Separately, a Kuwaiti newspaper quoted the Qatari oil minister as saying Opec was not behind the recent rise in oil prices as markets were well supplied and the price was purely driven by speculators.