Oran, Algeria: Algerian energy minister Chakib Khalil said on Saturday he believed the Organisation of Petroleum Exporting Countries (Opec) can do nothing at this stage to restrain rising oil prices, despite concerns the high cost of energy could hurt the economic recovery.
"I do not see really what Opec can do to have any impact on the prices at this stage because the increase in prices is not led by the lack of supply, but it is really led by the economic recovery," Khalil told a news conference.
"We have ample supply. The stocks are very high," he said in the Algerian city of Oran, which is hosting a meeting of some of the world's biggest gas exporters today.
Oil prices have nearly tripled from the lows near $30 (Dh110) a barrel seen at the end of 2008 to around $85 per barrel as investors eye signs of an economic recovery. The International Energy Agency, which advises industrialised economies, warned on Friday that oil prices at $85 could endanger the fragile recovery by feeding into higher energy costs for businesses and consumers.
Opec could in theory increase output quotas to try to cool prices but members have shown no sign of wanting to do that.
Venezuela's oil minister said last week he saw no need for an increase in output unless there was a robust strengthening of demand, and Kuwait's oil minister said Opec would only consider raising output if oil went above $100 per barrel.
Algeria is hosting a meeting of the Gas Exporting Countries Forum — whose 11 members account for about 70 per cent of the world's gas reserves and are looking for ways to reverse a slump in gas prices.
Coordinated cuts
Khalil will ask ministers to study a proposal to make coordinated cuts in supply to the spot market in natural gas, a step the organisation has never before taken.
But so far other member states have not explicitly backed the Algerian proposal. Asked if it was still realistic, Khalil said that was for the meeting to determine.
"All the ministers are arriving ... They will have the chance to evaluate the study and make the appropriate decision so I am not going to make any forecast about what's going to happen in that meeting," he said.
