OPEC crude price cracks 120 dollars barrier

Business Materials 21 May 2008 15:29 (UTC +04:00)

The price for crude oil produced by the Organization of the Petroleum Exporting Countries (OPEC) reached a new all-time-high on Tuesday, OPEC said Wednesday.

One barrel (159 litres) of OPEC-produced crude stood at 121.02 dollars on Tuesday, up 1.78 dollars from the previous day, jumping above 120 dollars for the first time, reported dpa.

Record prices were reached despite the absence of real bullish fundamentals, analysts said.

OPEC member Iraq said hat owing to recent seismic surveys it would upgrade its reserves estimates to 350 billion barrels, more than Saudi Arabia.

According to Vienna-based analysts JBC more news to ease supply concerns was Kuwait's announcement of a major upgrade of its export facility, increasing capacity to 3.4 million barrels per day.

OPEC calculates an average basket price based on 13 important brands produced by cartel members. The organization is responsible for about 40 per cent of the global crude output.