Qatari Oil Minister Abdullah al-Attiyah said on Wednesday that a new record oil price of $130 a barrel was not caused by a shortage of supply and there was no need for Opec to take any action. Asked if Opec would hold an emergency meeting after oil hit reached the new record high, he told reporters: "No, what for? It is not a supply issue."
Oil prices have risen from below $20 in early 2002 to hit a new record of $130 on Wednesday and US investment bank Goldman Sachs predicts they will reach $141 later this year. Opec members have consistently blamed soaring prices on geopolitics, a weak dollar and speculation, saying there are enough supplies on the market.
Investors have been drawn in by a weak US currency, which has made dollar-denominated commodities relatively cheap for holders of other currencies. Opec policy remains unchanged but its biggest producer and the world's largest exporter, Saudi Arabia said this month it had raised output by 300,000 barrels a day. The Saudi announcement came while US President George W. Bush was visiting Riyadh to push for more oil supplies.