Opec oil prices soar above $121 per barrel

22 May 2008

The daily average price of the Organization of Petroleum Exporting Countries (Opec) has risen above $121 (£61.25) a barrel for the first time.

According to the Vienna-based oil producers' cartel, it has no intention of increasing production ahead of its September meeting, despite calls from around the world for a boost to dampen soaring prices.

Abdalla Salem el-Badri, Opec secretary general, has stated that supply is enough to meet demand and that raising production would not have a substantial effect on oil prices.

British prime minister Gordon Brown has leveled criticism at Opec, stating that the cartel should take action to curb soaring prices, which are reaching record levels almost daily around the world.

In the US, the House of Representatives has approved an attempt by the federal government to launch a legal challenge to Opec in US courts over allegations of price fixing.

Oil prices in Thursday trading on the Asian stock market rocketed to a record of more than $135 a barrel before dropping back, as supply concerns, forecasts of rising demand from China in the wake of the earthquake and a weak US dollar pushed crude futures upwards.

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