OPEC’s secretary-general, said that the cartel did not favour oil prices at this level but added the crude oil market has been very well supplied”. OPEC, which controls 40 percent of the world’s crude oil output, blamed speculation, investors rush for commodities to hedge against a falling dollar and geopolitical tension for the 10 percent rise this week.
Possible Turkish military action against Kurds in Iraq, the world's third-largest holder of oil reserves, and tensions between Teheran and the West over Iran’s suspected nuclear program boost worries about supply disruptions.
Since 2002, oil prices have more than quadrupled. From the beginning of 2007 they have increased 79 percent.