Seoul, South Korea, Asharq Al-Awsat -OPEC president Edmund Daukoru called Monday for the international community to work to solve geopolitical tensions that help contribute to high oil prices.
“Geopolitical tensions … let the global community fix them,” Daukoru said, emphasizing that the 11-member organization of petroleum exporting countries has no Political role itself.
“OPEC is not a political organization,” he said. “OPEC is committed to stabilization of markets.”
Daukoru, who is also Nigeria’s petroleum minister, made the comments at a press conference in Seoul. He was in South Korea to meet government officials and attend an energy forum with South Korean business executives.
Daukoru, who is also Nigeria’s petroleum minister, made the comments at a news conference in Seoul. He was in South Korea to meet government officials and attend an energy forum with South Korean business executives.
Oil prices rose Monday in Asia after Iran’s supreme leader said the day before that his nation could jeopardize the world’s oil supply if the West punished Tehran over its nuclear program. Light, sweet crude for July delivery rose $1.02 to $73.35 a barrel in electronic trading on the New York Mercantile Exchange.
Ayatollah Ali Khamenei, who has the final say on all state matters, addressed Western nations in a speech, saying: “If you make any mistake (punish or attack Iran), definitely shipment of energy from this region will be seriously jeopardized.”
Daukoru said his main concern about high oil prices is that they will divert investment away from fossil fuels and into alternative sources of energy.
“I really can tell you that we are concerned with high oil prices,” he said. “Because at a certain psychological level alternative competing fuels would start to divert investment that should have otherwise come into the oil sector.”
Daukoru said that current high oil prices are primarily caused by bottlenecks such as a lack of refining capacity. He added that factors including inflexibility in gasoline specifications from country to country, geopolitical tensions and hedge funds also play a role.