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News Link • Oil

OPEC sees oil rally towards $80 as short-term spike, not supply-driven

• by Alex Lawler

The view of top exporter Saudi Arabia is that any brief, speculator-driven jump in oil prices is not sufficient grounds for producers to boost output, an OPEC source familiar with the kingdom's thinking said.

For such a decision to occur, the rally would need to be driven by data pointing to a supply impact, the source said.

The four OPEC delegates said the latest rise in prices stemmed more from concern about U.S. sanctions on Iran and tension in the Middle East, rather than a suddenly tighter balance between oil supply and demand.

"Prices are high just because of the tensions," one of the OPEC delegates, who declined to be identified, said.

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