OPEC president rules out output hike Jun 20 08:49 AM US/Eastern



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OPEC president Chakib Khelil said on Friday it was illogical and irrational to ask the oil cartel to increase output so as to take the pressure off soaring prices, the Algerie Presse Service (APS) news agency reported. "To ask the oil producers to increase their output is illogical and irrational," Khelil was quoted by APS as saying ahead of a meeting Sunday in Jeddah of oil producers and consumers to discuss record high prices.

Khelil noted that he was invited to the Saudi Arabian summit in his position as Algerian energy minister and not as OPEC president, and therefore he could not present any OPEC position during the discussions.

"Saudi Arabia decided to hold this meeting between oil producers and consumers, as well as oil companies, in order to determine the causes behind rising oil prices," he said.

"The principal objective of the Jeddah meeting is to clarify positions regarding the reasons behind this rise."

The Jeddah meeting comes only days after oil prices jumped to new record highs just short of 140 dollars per barrel, sparking fresh concerns that soaring energy costs will both stoke inflation and depress the global economy.

Khelil said that just because computer or car prices were high, "would one ask their producers to make more?", insisting again that oil was being driven higher by factors other than supply alone -- most notably speculation and a falling dollar.

He also noted that high tax levies on fuel in some countries such as France or Britain were also to blame, with all these issues to be discussed at the Jeddah meeting.

OPEC pumps about 40 percent of the world's oil supply.




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