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Crude Oil Prices Surge despite OPEC Production Boost
World oil prices have surged to record highs, even as the Organization of Petroleum1 Exporting Countries announced a boost in production.
For the first time, oil prices rose above $56 a barrel in New York for light sweet crude, while Brent North Sea crude hit a new record of $54 and 85 cents a barrel in London.
The spike2 in prices came on a day when OPEC decided3 to raise its collective crude-oil production by 500,000 barrels a day, from 27 to 27.5 million barrels. At a meeting in Iran, the 11-member cartel pledged to consider raising the quotas4 even further if oil prices remain high.
The OPEC move did not appear to impress the market or many analysts5.
"It will have some effect on prices, but it is largely symbolic," said Herman Franssen, who heads the Washington-area consulting firm, International Energy Associates. "There is very little spare capacity in the system, which makes people nervous about future supply. Outside of Saudi Arabia, the [United Arab] Emirates and Kuwait, everybody produces at maximum level. Those three countries determine in the market place how much additional oil will be added, because everybody else is at capacity."
Mr. Franssen, who previously6 served as an advisor7 on petroleum matters to Oman, says OPEC has established production ceilings, but has yet to set a new ceiling for target oil prices since a previous ceiling, in the mid-$20 per barrel range, was obliterated8 in 2003.
Speaking at the OPEC gathering9, Kuwait's energy minister, Sheikh Ahmad Fahad Al-Ahmad Al-Sabah said surging oil prices are of great concern. He said current price levels are not sustainable, and that volatility10 benefits neither producers nor consumers.
The minister blamed seasonal11 factors such as winter weather in the Northern Hemisphere and supply disruptions in Iraq for high oil prices, but added that global oil supply remains12 adequate to meet expected demand.
Michael Bowman, VOA News, Washington.
1 petroleum | |
n.原油,石油 | |
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2 spike | |
n.长钉,钉鞋;v.以大钉钉牢,使...失效 | |
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3 decided | |
adj.决定了的,坚决的;明显的,明确的 | |
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4 quotas | |
(正式限定的)定量( quota的名词复数 ); 定额; 指标; 摊派 | |
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5 analysts | |
分析家,化验员( analyst的名词复数 ) | |
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6 previously | |
adv.以前,先前(地) | |
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7 advisor | |
n.顾问,指导老师,劝告者 | |
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8 obliterated | |
v.除去( obliterate的过去式和过去分词 );涂去;擦掉;彻底破坏或毁灭 | |
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9 gathering | |
n.集会,聚会,聚集 | |
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10 volatility | |
n.挥发性,挥发度,轻快,(性格)反复无常 | |
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11 seasonal | |
adj.季节的,季节性的 | |
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12 remains | |
n.剩余物,残留物;遗体,遗迹 | |
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