Opec warns oil could prices could exceed $170 a barrel

By MoneyhighStreet Staff. Published on July 1, 2008 This post currently has no comments.

oil field
The price of oil could hit $170 a barrel in the coming months, the Organisation of Petroleum Exporting Countries (Opec) has warned.

Speaking late yesterday (June 30th) evening, the Opec president, Chakib Khelil, revealed that producers would not return to a price band system to control crude prices. The move had earlier been suggested by India in a bid to curb the soaring prices that have hit consumers and businesses across the globe in recent months.

Mr Khelil told reporters after the day''s business at the World Petroleum Congress in Spain that bands would always fail because there would never be any agreement on pricing.

"Producing and consuming nations never agree on any price. You remember we talked about $15 and they were saying $13. We talked about $22 and they were saying $18," he said.

"Then we did away with the price band. Now they say we need to come back to the price band, but we are never going to agree. Let the oil market decide the price.

"Maybe the price may go up to $150 (a barrel), may be to $170 (per barrel) as summer driving demand rises. But end of this year, we expect prices to come down."

Overnight oil prices remained above $140 a barrel, after they topped $143 earlier in the day.