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OPEC Fails Reach Agreement, Spurring Oil Prices

June 8, 2011 at 22:44 by Vladimir Vyun

Crude oil rose today as the meeting of the Organization of Petroleum Exporting Countries result in disagreement of its members about production quotas. Earlier crude fell on the speculation that the OPEC will increase output.

Ali Al-Naimi, Oil Minister of Saudi Arabia, which is the biggest producer of oil, said that his country, together with Kuwait, Qatar and the United Arab Emirates, is ready to supply more crude to markets. Other members were reluctant to support this idea, it seems. Analysts believe that it means some OPEC members have low spare capacity.

Ali Al-Naimi said:

It was one of the worst meetings we’ve ever had. We were unable to reach an agreement.

July contract for crude oil delivery jumped $1.65 to $100.74 per barrel on NYMEX, the highest price since May 31. July for delivery Brent crude rose $1.07 (0.9 percent) to $117.85 per barrel on ICE, reaching the highest level since May 4.

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