Iran, the second largest producer and delegate of Organization of Petroleum Exporting Countries has frequently backed price fluctuations and said that the current output ceilings and high prices are acceptable. Consequently, OPEC delegates have claimed that a formal, concentrated change was implausible to be debated and individual members would likely increase output unilaterally to make up for growing consumption.

Although the price of oil has fallen about %10 since the start of May, the International Energy Agency has given a strong warning that high oil prices could still pose a threat to the global economy if oil exporting countries do not boost supplies.

The IAE believes that current supplies may not be sufficient to meet the seasonal rise in demand between May and August.

The costs of U. S. crude increase by more than $91 a barrel, staying just under a 26-month top hit in the former session, defended by a less strong dollar and anticipation that a huge snow storm on the U. S. East Coast will stir up the demand for heating oil.

Saudi Arabian Oil Minister Ali al-Naimi believes that the oil supply and demand is in balance and the prices hence should remain in the range of $70 to $80. He further went on to say at OPEC’s meeting in Quito, Ecuador that the output targets haven’t changed and the price of $90 will be discounted as the storage has supplies and an economic recovery at the global forum will prevent the prices to rise for the time being.

The decline of 13 percent in the dollar index ever since the month of June has directed few OPEC affiliates to demand oil to hike to $100 a barrel.

The decline of 13 percent in the dollar index ever since the month of June has directed few OPEC affiliates to demand oil to hike to $100 a barrel.