December 10, 2010 / 7:01 AM / 8 years ago

Libya: No OPEC hike if speculation sends oil to $100

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured on the wall of the new OPEC headquarters in Vienna March 16, 2010. REUTERS/Heinz-Peter Bader

QUITO (Reuters) - OPEC should not increase production if speculation drives oil prices to $100 a barrel, but should look to fundamentals to determine if the group needs to hike output, the head of Libya’s OPEC delegation said on Thursday.

“Once we feel that world demand is increasing and there is not enough supply in the markets in that case we will increase the production,” said Shokri Ghanem, chairman of Libya’s National Oil Corporation, reiterating his earlier comments that OPEC will not change output levels at Saturday’s meeting.

“There is a lot of oil in the market, there is no shortage, so putting more oil (in the market) would not be prudent.”

Asked about whether the group would increase output if oil prices rose to $100 a barrel, Ghanem said: “It depends on whether it came to that level due to a supply shortage or a demand increase, or just simply because of speculation.”

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