Shell: It’s Not Shortage To Be Blamed For Oil Prices

Oil prices reached a record high above $US135 a barrel due to market sentiment rather than a shortage of supply, according to Shell chief executive Jeroen van der Veer.

US crude oil hit an all-time peak on Thursday, climbing to $US135.09, lifted by concern about long-term supply and a host of predictions of further rises from influential investment banks and investors.
The price fell back in later trading, with US crude dipping to $US132.22 and London Brent crude to $US132.01 a barrel.

Mr van der Veer, head of the world's second-largest fully publicly traded oil firm by market value, says there is no shortage of oil.

"There are no tankers waiting in the Middle East, there are no cars waiting at gasoline stations because they are out of stock. This has to do with psychology in the markets and you cannot forecast psychology".

Other members of the Organization of the Petroleum Exporting Countries agree with the view, while the US says supply is tight.
While rising prices are boosting profit for the industry, the Shell chief executive said that high oil costs were a mixed blessing.

"For many consumers in the world, this really starts to hit them. Secondly, we see that you get a kind of public outcry.
"At the same time, the only thing that we can do is use the profits we make to invest for additional supplies."

Petrol up again

The oil price spurred another round of petrol price rises in New Zealand, with the most popular variety 91 octane rising above $2 a litre for the first time.

BP, Caltex and Challenge raised petrol prices on Thursday by four cents a litre and diesel by six cents a litre.
91 octane has been raised to $2.00.9 a litre, with 95 octane at $2.05.9 a litre and diesel at $1.73.

Shell said on Thursday it was reviewing its pricing, but would not be making any change immediately. Gull said it had no plans yet to lift prices, which it has held one cent a litre cheaper than its major rivals.