(MEBG) – In a letter to Opec Secretary-General Rilwanu Lukman, Ali Rodriguez, the cartel’s president, warned the group that rising oil stocks could result in a drop in world oil prices, reported the Bahrain Tribune.
According to the newspaper, Rodriguez wrote: “I wish to point out that attention should be given to the rapid stock building of crude which is presently taking place, and to the possible impact that such a situation could provoke in prices for the rest of this year and mainly for 2001.”
As for Opec’s price mechanism, which should trigger an automatic fall in prices, he stated that it was not applicable yet since there was not any increase in oil output.
International benchmark Brent crude settled in London on Friday at $27.36 a barrel. Oil has risen modestly since Wednesday, stemming a slide that saw crude prices fall to an 11-week low.
