The Times: Price of oil remains burning issue (ShellNews.net)

By Stella Shamoon

September 25, 2004  

The price of oil is on the boil. The Organisation of Petroleum Exporting Countries (Opec) failed to calm market fears of a world supply shortage by increasing its output limit by one million barrels a day to 27 million.

Opec’s voice fell on deaf ears as Hurricane Ivan roared through the Gulf of Mexico and forced the shutdown of some production in the US.

Moreover, Opec does not have the spare capacity to bring the price of oil down to its target of between $22 and $28 a barrel. It may raise that benchmark price by up to $10 at its next meeting in Cairo in December, thus establishing a higher psychological level for the oil price on world markets.

The continued chaos in Iraq and heightened risk of political turmoil in Russia will keep the oil price simmering. Shares in Schlumberger, ENI, Premier Oil and Shell will remain strong. Hold all.