OPEC president Chakib Khelil warned July 6, that oil prices
are expected to continue to rise as a consequence of the
weakening dollar, in an interview in the Algeria-News.
"The price of oil will rise again in the coming weeks. We have
to follow the evolution of the dollar, because a one per cent
fall in the dollar means four dollars more on the price of
oil," said Mr Khelil, who is also Algeria's minister of energy
and mines.
"As producer countries we think that the current supply is
sufficient, that this balance in supply is in everybody's
interests and that it shouldn't be disturbed, because the
current rise in oil prices is in nobody's interest," He
stressed.
Mr Kheli also said “I believe that 60 per cent of the rise is
due to the fall in the exchange rate of the dollar and to
geopolitical problems, and 40 per cent to the intrusion of
bioethanol on the market."
"I can affirm that all the (OPEC) countries are in favour of
new explorations (of oil reserves), but the fact is that the
embargo imposed by Libya has prevented any increase of
investment in that country, just as the current embargo on
Iran is stopping anyone investing there."
"The United States is threatening severe economic sanctions
against any group which dares invest in Iran. Similarly, the
war in Iraq is why investment there is weak. No OPEC country
can invest in embargoed countries."
In related news, General Hassan Firouzabadi, chief of Iran’s
army has said that his country would close the Strait of
Hormuz, a key chokepoint for the export of oil from the gulf,
if its interests were threatened.
“All the countries should know that if Iran's interests in the
region are ignored, it is natural that we will not allow
others to use it (the strait),'' the Fars news agency quoted
General Hassan Firouzabadi as saying July 5.
However, the commander of the US Navy's Fifth Fleet, Vice-Admiral
Kevin Cosgriff, said last week that his forces would not allow
Iran to close the strait.
Speculation has been mounting that Israel could be planning a
military strike order to halt Iran’s controversial nuclear
programme.
Reported by Agence France Presse, the Sunday Telegraph,
Algeria-News and Fars news agency.
