The Organization of Petroleum Exporting Countries is doing its best to restore order and stability to the market with reasonable prices that are acceptable to producers and consumers alike, the group's president said Monday. "OPEC is doing everything it can to restore and stabilize oil prices," President Purnomo Yusgiantoro said. He said oil prices began increasing last winter because of higher-than-expected growth in oil demand, especially in China and the United States, and because of geopolitical tensions and refining and distribution bottlenecks in some major consuming regions. These factors caused increased speculation in futures markets, driving oil prices higher, he said in a statement. "There must be a significant reduction of geopolitical tensions before the market can hope to return to a period of sustained price stability," he said. Purnomo said current high oil prices appear to have had a relatively limited impact so far on global economic growth, although much will depend on how long the group's basket price stays above US$35 a barrel. Oil prices retreated somewhat last week, closing at US$43.18 per barrel in New York on Friday, down from a record US$49 per barrel. OPEC will meet in Vienna next month to discuss whether to increase its official output ceiling to combat rising oil prices.
