Please check the post made in the month of March 2011 we had already hinted the crude price could touch all time high and today the OPEC meeting has just confirmed that ..please find below an overview of the OPEC meeting happened on Wednesday 8th June 11
Oil prices jumped by USD 2 on Wednesday after OPEC failed to reach a deal to increase output, raising fears of supply shortages later this year and a price rally that could damage global economic recovery.
OPEC talks broke down without an agreement to raise output after Saudi Arabia failed to convince other members to lift production.
"We were unable to reach an agreement -- this is one of the worst meetings we have ever had," Saudi oil minister Ali al-Naimi said.
By 1355 GMT US light crude was up USD 1.40 dollars at USD 100.50 while Brent added USD 1.08 at USD 117.86.
"It came as a surprise. It is bullish for prices. If you look at demand it will be very robust in the next months and there is a big need for extra OPEC oil," said Amrita Sen from Barclays Capital.
OPEC's Secretary General Abdullah El-Badri said the effective decision was no change in policy and that OPEC hoped to meet again in three months' time.
The US Energy Information Administration will issue its weekly inventory data later on Wednesday.
Analysts expected US crude oil inventories to have fallen 300,000 barrels last week, while gasoline stocks climbed 1 million barrels, according to a Reuters poll.
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