Oil: $130 Is Just Prelude

Oil prices, which on Wednesday hit a record high above $130 a barrel, will probably rise even further, the head of Libya's National Oil Corporation (NOC) said.

Libya and fellow members of the Organization of the Petroleum Exporting Countries have blamed factors other than supply for oil's record run, such as the weak U.S. dollar and speculative trading.

Oil hit a record high of $130.47 on Wednesday and is widely predicted to continue its climb. The price could hit $200 within the next two years driven by poor supply growth, Goldman Sachs said earlier this month.

OPEC policy remains unchanged but its biggest producer, Saudi Arabia, said last week it had raised output by 300,000 barrels a day to make up for shortages in other countries.

Ghanem, supporting his view that more OPEC oil would not lower prices, noted that the Saudi statement on Friday did not stop prices from rising. He also questioned whether OPEC was able to boost supply further. "I don't think OPEC can do anything," he said.

The Libyan official also said that his country's production was not affected by a power outage last week.

A sandstorm on May 13 caused a power outage at the Al-Baidha oilfield and at wells of the Tibisti field, the Jana news service said on Monday.