Opec president rejects calls for increased production

25 June 2008

The president of oil producers' cartel Opec has insisted that production does not need to be increased and record oil price rises are down to other factors.

World leaders have been placing increasing pressure on oil exporting countries to raise production.

However, Chakib Khelil suggests that it is other factors, such as the weak US dollar and supply concerns about nations such as Iraq.

Following talks with European Union nations, the Opec president declared that oil production does not need to be increased, pushing oil prices up to almost $138 (£70) per barrel in Tuesday trading.

"As far as fundamentals are concerned I think we have equilibrium between supply and demand," he stated.

According to Mr Khelil, world demand for oil must increase before production is raised, as there are still global oil reserves and no shortage of available supplies.

The cost of oil has doubled over the past year with analysts blaming rising demand, the global economic slowdown and speculation by investors for record oil prices.