Oil prices dip, as Saudi says OPEC may raise output

24th January 2011, Comments 0 comments

World oil prices fell slightly on Monday, as OPEC kingpin Saudi Arabia said the cartel may raise its crude output to meet an increase in demand this year.

New York's main contract, light sweet crude for delivery in March, slipped 42 cents to $88.68 a barrel.

Brent North Sea crude for March delivery edged down four cents to $97.56.

The Organization of Petroleum Exporting Countries (OPEC) could raise output to meet a "two percent" increase in demand during 2011, Saudi's oil minister said on Monday.

As non-OPEC oil producers are expected to increase output, OPEC countries will also have the opportunity "to boost their supplies to the global market to meet the rising global demand," said Ali al-Naimi.

Speaking at the Annual Global Competitiveness Forum in Riyadh, Naimi added that he expected average oil prices to be around last year's level of $80 despite a recent spike towards $100 a barrel in London.

"I expect prices to remain at the same level as last year," said Naimi.


© 2011 AFP

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