Kuwait PM: High oil prices unjustified

United Nations: Opec oil producer Kuwait believes the big rise in oil prices is "unjustified" but beyond the control of producers, the country's prime minister told the UN General Assembly on Thursday.

"The unjustified rise in prices, which is a source of concern, is caused by factors that are out of the control of the producing countries," Shaikh Nasser Al Mohammad Al Sabah said.

"Kuwait continues to follow a balanced oil policy, which takes into consideration the interests of the consuming as well as the producing ones, as well as to maintain the stability of prices in the world market," he said.

November US light crude rose $2.29 (Dh8.40), or 2.17 per cent, to settle at $108.02 a barrel on Thursday on the New York Mercantile Exchange (Nymex). The factors pushing petroleum prices higher "include speculation, additional taxes on fuel, the lack of construction of new refineries, as well as upgrading existing ones," Shaikh Nasser said.

"The continued presence of all of these factors leads to the exacerbation of the economic crises and to the rise in the rates of inflation in the developing countries."