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Tuesday, 02 December, 2008, 00:20 GMT | more >>

Bodman asks Opec to open the taps



By Upstream staff 

US Energy Secretary Sam Bodman has called on Opec to boost oil output at its meeting tomorrow to help bring down high oil prices.

Speaking to reporters, Bodman said an increase in production by Opec "would be good".

"It is clear that if they were to increase supply we would have some pressure to decrease the price," Reuters quoted Bodman as saying.

Opec ministers have indicated the group is unlikely to raise output at this week's meeting in Vienna.

Bodman's language was considerably more restrained than statements by US President George W. Bush, who said it was a "mistake" for Opec to allow energy prices to stay high and hurt the economies of its biggest customers.

"My advice to Opec is understand the consequences of higher energy prices," Bush told reporters today after talks with Jordan's King Abdullah.

Bodman said recent US crude oil futures at record levels above $100 a barrel were "a concern," but declined to say if he thought they were justified by current fundamentals.

"Look, the price of oil is set in the trading rooms in New York and London and Tokyo and Frankfurt and all around the world," Bodman said. "Whatever it is, it is."

Meanwhile, the US Energy Information Administration (EIA) said Opec needs to raise oil production levels by 300,000 to 500,000 barrels per day to help build global petroleum inventories and lower record crude prices.

"At least 300,000 to 500,000 (bpd) " are needed from Opec as the producer group meets this week in Vienna, EIA chief Guy Caruso told Reuters.

"We still see a tight market in the first half of 2008," he said.


Tuesday, 04 March, 2008, 18:04 GMT  | last updated: Tuesday, 04 March, 2008, 18:04 GMT

Opec call: Sam Bodman said extra supply from Opec 'would be good'
 

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