OPEC Won’t Raise Oil Output

From the words of Iran’s oil minister OPEC won’t increase oil output as it will not influence the prices because the market is already “saturated” with oil.

Gholamhossein Nozari also dismissed as a ‘political move’ Saudi Arabia's announcement on Friday of a modest hike in output after an appeal from visiting U.S. President George W. Bush.

Oil prices have risen six-fold since 2002 and doubled since 2007 as rising demand from China and other developing nations cinched spare production capacity, adding pressure on the U.S. Economy already hard hit by a housing slump.

OPEC's smallest producer, Ecuador, said on Friday that members should consider raising output to stem the oil rally because high prices are hurting the poor.

But Iran, OPEC's second-largest pro
ducer after Saudi Arabia and a price hawk, says the market is well-supplied with oil and blames the price rise on a weak U.S. dollar, speculation and other factors outside the control of the 13-member cartel.

Oil shot to a record high near $128 a barrel on Friday as a bullish price forecast from investment bank Goldman Sachs drowned out the offer of more supply from Saudi Arabia.