Washington urges Opec to raise production

Crude oil prices yesterday jumped more than $1 a barrel after an unexpected drop in US crude and products inventories and strong demand growth.

The inventories decline, which suggests a tightening of the crude oil market, came as the US government yesterday asked the Organisation of the Petroleum Exporting Countries to raise its production.


The Washington call follows a similar one from the Paris-based International Energy Agency, the industrialised countries’ energy watchdog.

Guy Caruso, head of the analytical arm of the US Department of Energy, said: “We need more [Opec] production in the second half of the year, or we would have very low inventory.” The oil cartel, which controls about 40 per cent of global oil production, has already rejected calls for an output boost.

Financial Times