VIENNA -- Although the Organization of the Petroleum Exporting Countries (OPEC) said time and again that the international oil market was well-supplied, oil prices have surged dramatically this month.
OPEC daily prices rose again by 0.9 U.S. dollar Thursday and set a new record of 116.93 dollars per barrel (dpb), the cartel's secretariat said Friday.
The prices have been on constant rise since the beginning of this year, with the monthly average prices surging from 88.35 dpb in January to 105.16 dpb in April.
Comparing with previous years, the prices soared in May despite the warming weather of the northern hemisphere, which should reduce oil demand.
On May 1-8, the prices rocketed from 105.99 dpb to 116.93 dpb in just five consecutive trading days.
SPECULATIONS IN COMMODITY MARKET
The sharp increase of oil prices is attributed to speculations in the commodity market, especially the oil market, coupled with the depreciation of the U.S. dollar, OPEC Secretary-General Abdullah al-Badri said in a statement Thursday.
Al-Badri listed the oil stocks of the Organization for Economic Cooperation and Development and the United States to prove his view that the oil market is well-supplied.
He said OPEC's current daily output stands at more than 32 million barrels, adding that a number of new crude oil projects have started to come on-stream.
In addition, the cartel's spare capacity continues to increase, with the figure currently standing above 3 million barrels per day, al-Badri said.
GEOPOLITICAL CRISIS, GOLDMAN SACHS' PREDICTION STIMULATE PRICE RISING
Experts said that along with the weak U.S. dollar, the geopolitical crisis, especially in some OPEC member countries, also stimulated the rising of the oil prices.
Meanwhile, Goldman Sachs, a famous international investing bank, said recently that the oil prices would reach between 150 dpb and 200 dpb. This prediction encouraged the speculations in the oil market, resulting in enormous rise of oil prices.
Some market research groups also foresee a consecutive rise of oil prices in the short run. indicating that approaching 200 dpb is a likely scenario.
OPPOSITE ANALYSIS
However, Thomas Straubhaar, director of an economic research body in Germany, said Friday that the oil prices would go down in the medium term. He even predicted a trend of "dropping under 100 dpb."
The higher oil prices would lead to fuel-saving measures and larger output by producers, he said, adding that the supply would become excessive and drag down the rising prices.
In his statement, al-Badri also warned of the overheating speculations in the oil market.
"Crude oil movements indicate that some (OPEC) member countries are unable to find buyers for their additional supply," he said.
OPEC daily prices rose again by 0.9 U.S. dollar Thursday and set a new record of 116.93 dollars per barrel (dpb), the cartel's secretariat said Friday.
The prices have been on constant rise since the beginning of this year, with the monthly average prices surging from 88.35 dpb in January to 105.16 dpb in April.
Comparing with previous years, the prices soared in May despite the warming weather of the northern hemisphere, which should reduce oil demand.
On May 1-8, the prices rocketed from 105.99 dpb to 116.93 dpb in just five consecutive trading days.
SPECULATIONS IN COMMODITY MARKET
The sharp increase of oil prices is attributed to speculations in the commodity market, especially the oil market, coupled with the depreciation of the U.S. dollar, OPEC Secretary-General Abdullah al-Badri said in a statement Thursday.
Al-Badri listed the oil stocks of the Organization for Economic Cooperation and Development and the United States to prove his view that the oil market is well-supplied.
He said OPEC's current daily output stands at more than 32 million barrels, adding that a number of new crude oil projects have started to come on-stream.
In addition, the cartel's spare capacity continues to increase, with the figure currently standing above 3 million barrels per day, al-Badri said.
GEOPOLITICAL CRISIS, GOLDMAN SACHS' PREDICTION STIMULATE PRICE RISING
Experts said that along with the weak U.S. dollar, the geopolitical crisis, especially in some OPEC member countries, also stimulated the rising of the oil prices.
Meanwhile, Goldman Sachs, a famous international investing bank, said recently that the oil prices would reach between 150 dpb and 200 dpb. This prediction encouraged the speculations in the oil market, resulting in enormous rise of oil prices.
Some market research groups also foresee a consecutive rise of oil prices in the short run. indicating that approaching 200 dpb is a likely scenario.
OPPOSITE ANALYSIS
However, Thomas Straubhaar, director of an economic research body in Germany, said Friday that the oil prices would go down in the medium term. He even predicted a trend of "dropping under 100 dpb."
The higher oil prices would lead to fuel-saving measures and larger output by producers, he said, adding that the supply would become excessive and drag down the rising prices.
In his statement, al-Badri also warned of the overheating speculations in the oil market.
"Crude oil movements indicate that some (OPEC) member countries are unable to find buyers for their additional supply," he said.
