By MARIA GRAZIA MURRU, Associated Press Writer
“Oil prices, there is a common understanding that has nothing to do with supply and demand,” al-Badri said on the sidelines of an energy conference in .
Oil prices reached a new high Friday at $117 a barrel.
A host of supply and demand concerns in the U.S. and abroad, along with the dollar’s weakness, have served to support prices, even as recordin the U.S. appear to be dampening demand. Crude prices have risen as much as 4 percent last week.
Thesaid the Organization for Petroleum Exporting Countries “will not hesitate” to increase production if the group thought the higher prices were due to shortages. But he said more oil will not solve the high prices.
OPEC’s production levels were just one of many factors, he said.
“But how much higher it will go, of course it depends on a number of things: the political situation, whether there is a natural catastrophe, whether there are speculations in the market, whether there are strikes in certain producing countries. So there are many other factors other than,” al-Badri said.