OPEC talk of pumping more oil

THE oil cartel OPEC said it would consult on a possible increase in production after the price of crude rose for a fifth successive day on Friday, trading above $US126 a barrel for the first time.

Amid heavy speculative buying by hedge funds, an OPEC source said member countries might discuss action aimed at bringing down the cost of fuel ahead of its scheduled meeting in September.

OPEC has insisted until now that the reason for the sharp increases in global prices has been due to factors other than demand and supply, and that production of crude has been adequate.

SMH