OPEC pledged Monday to boost crude output even more if necessary to ease soaring crude prices which have fueled worldwide concern, as a 800,000 barrel-a-day hike failed to drive down prices for more than a few hours.
The commitment came as protests over high fuel prices continued despite the decision on Sunday by the 11-member Organization of Petroleum Exporting Countries (OPEC).
"We maintain the option to put more oil in the market if the prices remain high," Secretary-General Rilwanu Lukman told a press conference confirming the output increase agreed on Sunday, to come into force from October 1.
Soaring prices have sparked warnings of an economic slowdown from consumer countries, and protests in Belgium, Britain, and France.
A German truckdrivers' spokesman warned Monday that French and British protests could spread to his country.
"We are very concerned and are ready to demonstrate nationwide to show our unhappiness with the government," Adolf Zubel, vice president of the BGL federation of cargo tranporters told AFP.
Prices rebounded during the day Monday, after falling initially after OPEC's decision, taken under intense pressure from oil consuming countries, where high prices have sparked protests and warnings of economic slowdown.
In New York benchmark light sweet crude for October delivery rose 97 cents to 34.60 dollars a barrel, while in London they bounced back above 33 dollars a barrel in afternoon trading.
EU Energy Commissioner Loyola de Palacio greeted the OPEC decision as "globally positive."
But analysts questioned whether the OPEC move would be enough to damp down prices whose soaring levels have brought turmoil and the threat of inflation and recession to some industrialised countries.
"Will this be enough to bring prices down? No. What we need is a psychological kick, and we didn't get it here," said analyst Roger Diwan of Petroleum Finance Co.
David Nesbitt, a trader with Prudential Bache brokerage, added: "The OPEC accord hasn't really broken down properly.
"There is a belief that some of the extra oil promised is just part of extra output produced in August. We could only be seeing an increase of 130,000 barrels a day, which isn't very much."
OPEC ministers are to meet again on November 12 to review the impact of the latest production rise, the third this year, in a bid to ease soaring crude prices, which hit a 10-year high of over 35 dollars last week.
Meanwhile, OPEC renewed on Monday its criticism of high taxes imposed by oil-consuming country governments.
"The conference expressed its dismay that the governments of the European Union nations fail to recognize the role which their excessive domestic taxation ... plays in the high pump prices being paid by consumers," the OPEC communique said.
"We hope that excessive taxation will be moderated," Lukman said.
Lukman said he had held talks with three EU representatives Monday on the tax issue, over which OPEC routinely criticizes the governments of consumer countries.
OPEC "welcomes the opening of dialogue with the European Union and other consuming nations, considering a continuous exchange of views on the oil market situation to be in the interests of both producers and consumers," it said.
The OPEC statement also blamed soaring crude oil prices on market speculation and manipulation, and on supply bottlenecks.
The hike, decided at a meeting of OPEC oil ministers in Vienna, took the 11-member group's total production to 26,200,000 barrels per day from 25,400,000.
Saudi Arabia, the world's biggest oil producer and the kingpin of OPEC, said on Monday that OPEC could increase output again if the latest 800,000-barrel boost does not calm markets.
Other countries, some with little spare capacity, had been reluctant to increase too much, fearing that they could only benefit Saudi Arabia.
Lukman downplayed fears that smaller OPEC countries would not be able to meet their quotas. "Maybe some countries are approaching those limits, but we'll see what they will be able to do," he said.—AFP.
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)
