Oil markets are fine, OPEC says

June 16, 2011 at 8:19 AM
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VIENNA, June 16 (UPI) -- Despite concerns over energy prices, there is no need for the International Energy Agency to advocate the release of emergency supplies, an OPEC official said.

Members of the Organization of the Petroleum Exporting Countries last week kept official oil production quotas set in 2008 in place despite dour economic forecasts regarding high energy prices.

OPEC Secretary-General Abdallah el-Badri said an average price per barrel of crude oil of $111 was something he considered "reasonable." He added that there was no need for the IEA to call on member states to release their emergency supplies.

"If a customer goes back to any of our member countries asking for more oil, I'm sure they will get it," he was quoted by The Daily Telegraph newspaper in London as saying.

The newspaper notes that OPEC members bound by production quotas are producing around 29 million barrels of oil per day, higher than the 24.8 million barrels set as a quota in 2008. Saudi Arabia, has said it would put more crude on the market in a unilateral move.

Economic analysts worry high energy prices could spark a double-dip recession, the Telegraph adds. OPEC members stand to make $1 trillion this year.

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