OPEC tries to soothe price volatility

LONDON, June 1 (UPI) -- Leaders of OPEC, which sets world crude oil prices, are trying to talk down recent price volatility.

The Organization of Petroleum Exporting Countries meets Thursday in Beirut to discuss, and perhaps set, new crude oil production levels, the cartel's basic means of controlling prices.

Indonesian Oil Minister Purnomo Yusgiantoro, OPEC's current president, said Tuesday he wants a significant rise in production to lower and stabilize prices, the Financial Times reported.

His remarks, and those of other OPEC leaders, follow fears terrorism will disrupt crude oil production.

Said Daniel Yergin, chairman of Cambridge Energy Research Associates: "Although (the attack) isn't a physical shock to supply, it's a psychological shock to the markets and people will look at risk differently in the aftermath of this."

Yergin also said that the crude oil supply is actually beginning to increase.