By Mohammed Najib

Doha, Qatar

Blame the high price of oil on speculators, in part anyway, says OPEC.

Recently, the head of the Organization of Petroleum Exporting Countries, speaking at a World Petroleum Congress panel, said the the world has plenty of crude, but the number of barrels of oil changing hands in the financial markets is 35 times greater than the actual supply.

OPEC Secretary General Abdulla Salem El Badri said 3 billion barrels per day are traded on global exchanges, but only 76 million barrels per day are in actual supply.

Despite the speculation, Badri does not view oil's current price near $100 a barrel excessively high. "The current price is comfortable for producers and consumers. It allows producers to make investments, yet doesn't hinder the global economy," he said.

Pointing to speculators for the rise in the price of oil is a claim OPEC has made before, and they are not alone. The U.S. Commodity Futures Trading Commission and others believe the newfound interest in oil contracts by pension funds, hedge funds and investment banks is causing oil prices to be unnecessarily high.

Joining in the stance that oil is plentiful are such oil giants as Exxon Mobil, Royal Dutch Shell and ConocoPhillips. Still, others maintain that oil prices are high due to tight supply, such as the International Energy Agency, which represents oil consuming countries including the U.S., Japan and European nations.

 

Twitter: @ihavenetnews

 

Speculators are to Blame for High Oil, OPEC Says | Global Viewpoint