Opec must lift oil supply: energy report

The price of oil will soar in the coming months, unless the Opec crude cartel ramps up output, the Centre for Global Energy Studies said in a report published on Monday.

“The world needs more oil if another price surge is to be avoided,” the London-based energy research group said in a monthly study.
“Opec continues to believe that the world is well supplied with oil, while prices look set to record their biggest ever quarter-on-quarter increase of close to US$11 per barrel between the first quarter of 2007 and the second quarter of 2007,” the CGES added.

“This dramatic rise in oil prices would seem to suggest that the world is short of oil and ought to be providing a clear signal to OPEC that its members need to put more oil into the market.”

Meanwhile it was reported that total Opec oil production fell by 360,000 barrels per day to 30.16 million barrels per day in May, after Iranian exports returned to their long-term average levels following two months of additional sales from floating storage.

Brunei Times