OPEC members are holding informal talks but haven't decided whether to call an emergency meeting to address the surge in oil prices, according to Gulf oil ministers.
The 12-nation Organization of the Petroleum Exporting Countries has so far held its official output quotas unchanged, even as massive protests across the oil rich Middle East have pushed global oil prices to their highest levels since late 2008. An uprising in OPEC member Libya has stoked supply concerns, increasing pressure on the producer bloc to pump more to ease prices.
Some members of the group, which supplies roughly 35 percent of the world's oil, are holding discussions about the rise in prices, Sheik Ahmed al-Abdullah al-Sabah told reporters outside Kuwait's parliament Tuesday.
"We are in consultation, but we have not decided which direction," he said, without providing details of the talks or where they might lead.
Kuwait is for now sticking to its previously agreed quota levels. "We didn't increase," al-Sabah said.
Oil prices hovered near $104 a barrel Tuesday, down from the nearly $107 a barrel struck the previous day, crude's highest level since Sept. 26, 2008. The rapid rise is translating into higher fuel prices.
OPEC is not scheduled to meet again formally until June 8 in Vienna.
Al-Sabah said OPEC member states haven't decided whether the price increase warrants an emergency meeting to adjust the group's output quotas. Several members of the group routinely produce more than their allotment. The temptation to cheat and pump more rises along with prices.
Iran, OPEC's No. 2 producer, currently holds OPEC's rotating presidency. Its support would likely be crucial in pulling together an emergency meeting but that could be hard to come by, said UK-based industry analyst John Hall.
"Iran probably couldn't increase output even if it wanted to," so it is content to let prices remain high, Hall said.
OPEC has repeatedly said the spike in prices is fueled by market fear driven by speculative investors rather than a tangible shortage of supply.
Oil inventories in developed nations remain high. But traders are concerned that the unrest that has ravaged Libya will spread to other major producers, particularly Saudi Arabia, which has witnessed only a handful of small protesters so far. Pro-reform protesters are calling for wider demonstrations in Saudi Arabia this week.
On Monday, Qatar's energy minister said there is no shortage of production or supply on global markets.
"The stocks are at a healthy level for the consumer so there is no reason to worry," the minister, Mohammed bin Saleh al-Sada, was quoted as saying by the state-run Qatar News Agency.
But al-Sada added that OPEC is closely monitoring the situation and stands ready to act if needed.
"From what we know, a number of countries are happy to check the market if there is any shortage," he said.
Libya sits atop Africa's largest proven reserves of conventional crude, and produces about 1.5 million barrels per day. But the fighting between anti-government rebels and forces loyal to leader Moammar Gadhafi has battered production, lowering output by more than half, according to many estimates.
Saudi Arabia, which has over 4 million barrels in spare production capacity, has been increasing its output to offset the Libya export slump.
© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.