DAVOS, Switzerland: Top Organization of Petroleum Exporting Countries (OPEC) officials reiterated that oil prices nearing $100 were not caused by a shortage of crude. In comments likely to reinforce expectations that the producer group is disinclined to step up production for now, OPEC Secretary-General Abdullah Al-Badri said he was "100 percent sure" there was no shortage in the oil market, and the UAE oil minister said it was "well supplied". Badri said the near-record spread between US oil futures and European Brent showed futures had become "disconnected" from the physical market. UAE's Mohammed Al-Hamli blamed cold weather and trader buying for price gains. OPEC officials also reiterated the view they've held since the group's last meeting in mid-December: that there's more than enough supply in the market, and that high prices alone are not going to force them into action. "I'm sure 100 percent when looking at the markets there is no shortage in the market, there is plenty of oil in the market... when OPEC sees an imbalance in the market, OPEC will act to balance the market," Badri said. "If you have a floating and commercial stocks for 60 days and we (at OPEC) are producing 29.3 million barrels per day, how are you telling me there is a shortage?" Al-Hamli added: "I still think the market is well supplied, and prices are driven by this cold weather and trader buying." Asked if OPEC was likely to increase its production this year, he declined to comment. OPEC is due to meet in June, and ministers from member states have said that there was no sign of an extraordinary meeting coming up, which Al-Hamli agreed with. "We are now just monitoring the market closely," he said. Badri also weighed in on the debate around the reliability of the world's two main oil benchmarks, US WTI crude and ICE Brent in Europe, which have moved to a near record gap of $12 a barrel this week as North Sea supplies tighten and a persistent glut hangs over the US mid-continent. "Brent is increasing not because of a shortage but because of technical problems... the price you are talking about is not the real price. The market got disconnected between the physical and price." US crude oil for March delivery rose $3.45 to $89.09 a barrel, with trade volume topping 1.2 million lots, nearing its record 1.432 million lots on April 13. In London, ICE Brent crude for March rose $2.13 to $99.52 a barrel, having earlier touched $99.74.
