Fears are growing among Opec nations that they might not be able to keep oil prices under control as concerns mount over a stand-off between Iran and the West.
The group, which accounts for about 40 per cent of the world's crude oil production, can release or restrict the supply of oil to world markets. But Opec is currently pumping at a three-year high of 30.92 million barrels per day (bpd), reducing its idle capacity to around 2m bpd. Yesterday Brent crude, the European benchmark, was trading at US$126 a barrel, a dollar short of the highs of last year during the Libyan conflict and 17 per cent higher than the start of the year.
"There is a lot of tension in oil-producing countries," said Mohammed Al Hamli, the UAE Minister of Energy. "That is reflected in the oil price."
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