Oil price spike ”very uncomfortable”: OPEC

ABUJA (Reuters) – The latest spike in oil prices is “very uncomfortable” and it is having a negative impact on the world economy,
OPEC President Edmund Daukoru said on Wednesday.

Daukoru, who is also Nigeria’s top oil official, told Reuters the
Israel-Hizbollah conflict was responsible for the latest spike, which saw U.S. crude oil futures hit $78.40 a barrel last week, and that OPEC had plenty of spare production capacity should it be needed.

“If it would have stabilized around the mid-60s, I don’t think people would complain too much. We are getting used to that, but the latest shootup to the mid-70s and above is very uncomfortable,” Daukoru said on the sidelines of a conference in the Nigerian capital.

“Clearly the latest flare-up between Israel and Hizbollah that is really the reason for the latest spike,” he said. “It is always unfortunate if we have to address issues outside the power of OPEC.”

Reuters