Opec Summit Leads to Supply Boost Promise

by Jordan Yerman | June 22, 2008 at 10:42 am

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After meeting in Jeddah, Opec nations and their biggest customers have agreed that oil supplies should be boosted, though no exact amount or percentage has been announced. In its announcement, Saudi Arabia asserted that price speculation was to blame for the meteoric rise in fuel prices, and not lack of utput.

Following their crisis summit in Saudi Arabia, officials noted price levels were "hostile" and more investment was needed to ensure "adequate" supplies.

The US, UK and other major consumers of oil have urged producers to boost supply, blaming lack of capacity for the recent price surge.

In a statement issued at the end of the meeting in Jeddah, officials from Opec oil exporters and consumers said "an appropriate increase in investment" in production was needed to ensure that the markets were "well supplied in a timely and adequate manner".

The final communiqué made no reference to immediate action to cool prices, which have surged more than 40% this year alone.

So, do you think consumer fuel prices will go down because of this?

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