Non-fundamental factors main cause of oil price fluctuation, OPEC

Non-fundamental factors are the main cause of the current fluctuations in the world crude oil price, a governor of the Organization of Petroleum Exporting Countries (OPEC), Maizar Rahman, said.

The present downturn in the oil price was caused by a recovery in the US dollar`s value which has led investors to quit futures markets in profit-taking efforts as putting money in oil is not so attractive anymore, he said here on Thursday.

Another non-fundamental factor was concern about a possible decrease in demand for crude oil in view of the sluggish US economy, he said.

Besides, in the second quarter of 2008, demand for oil had dropped by around 1.5 million barrels per day, he added.

Rahman believed the world oil price in 2008 would continue to be high but fluctuate within a wide range, namely between 80 US dollars and 110 US dollars per barrel.

"OPEC will maintain its oil price at a minimum of 80 US dollars per barrel and a maximum of 110 US dollars per barrel," he said.

A very high oil price would put a heavy burden on Indonesia and ...