Royal Dutch Shell leader agrees with OPEC officials.
Jeroen van der Veer, the top Royal Dutch Shell director, has echoed the views of many members of the Organization of Petroleum Exporting Countries that the world oil market is well supplied.
"There are no physical shortages in the world. We don't have ships waiting in the Middle East, no people queuing up for gasoline," van der Veer told reporters in Kuala Lumpur, Malaysia.
He alleged the high prices have a lot more to do with psychology than with supply or demand. Van der Veer also added that the focus needs to be on finding unconventional oil and gas and developing renewables.
Oil prices have continuously hit record highs since the beginning of the year. OPEC ministers blame the U.S. dollar value and geopolitical tensions for the price spike, Iran's PRESS TV reported, while other leaders say additional supply is needed.
When asked about his opinion on governments that are trying to stockpile oil, van der Veer said it was nothing new. He said firms now, however, must be careful where they invest, regarding geopolitical tensions.
In May, Nigeria sought $850 million from Shell, which the country's president said was owed to state oil firm NNPC as capital allowance from two offshore fields. NNPC and the government are also seeking $414.6 million they said were owed from gas sales and taxes for Shell's Bonga fields.
Van der Veer said he is looking at security and project funding issues in Nigeria, which had taken a toll on Shell's oil output and caused it to lose its position as the biggest producer in the West African country to ExxonMobil.
Oil and gas explorer Dana Petroleum discovered gas in Egypt.
The firm said it made a significant gas discovery offshore in Egypt, boosting its share price by 3 percent.
The well, in the Mediterranean, is Aberdeen-headquartered Dana's first gas find off the coast of Egypt, where it already has major oil explorations under way. Dana's oil exploration group is producing around 11,000 barrels of oil a day.
The discovery, in partnership with Gaz France, is to be capped and used for potential gas production well in the future.
Dana holds a 50 percent interest in the discovery and license area of West El Burullus. Gaz de France owns the other 50 percent stake.
"Making a discovery with our first well highlights the outstanding exploration potential of West El Burullus and significantly increases the likelihood of success for additional prospects which are being identified," said Chief Executive Tom Cross.
Gas giant BG Group's board will reopen talks with Origin Energy.
U.K.-based BG Group made an offer to Australian bid target Origin Energy over the weekend but was turned down. Now the firm will sweeten its $12.8 billion cash takeover offer, officials said.
Origin was close to selling to BG for $12.4 billion in an April offer, but Origin said its reserves are worth nearly $15 billion, pointing to the price per unit paid by Malaysia's Petroliam Nasional last week when it bought a stake in a project run by Australian rival Santos.
BG officials said they are considering several options, and Origin Managing Director Grant King said his company will keep communication lines open with BG Group.
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Closing oil prices, June 3, 3 p.m. London
Brent crude oil: $126.18
West Texas Intermediate crude oil: $125.89
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