changing factors and parameters that transcend markets and boundaries and are often unregulated. Therefore, the short-term oil prices are more closely tied to the internal logic of the financial markets than to underlying supply/demand fundamentals." The rising cost of oil and gas production, refining, and other related infrastructure bottlenecks, as well as the "rush into costly alternatives such as bio-fuels in some countries" were also increasing the cost of the marginal barrel worldwide, the minister said. "There are some fundamental factors that governments and the industry could address to bring long-term balance and reduce volatility," Naimi said. "Increasing capacities and channelling and facilitating investment in the upstream and downstream segment, in both the producing and consuming regions, is one." --more
