OPEC President Edmund Daukory says that oil prices will probably remain $70 a barrel till the end of 2006.
The oil cartel has enough spare capacity to keep the market supplied with crude and Daukoru claims that the international oil market was overreacting by keeping prices close to record level.
Keeping in mind the ongoing Lebanon crisis, start of hurricane season in the US, threat of inflation and the loss of sweet oil from Nigeria coveted by US refineries, the prices are unlikely to drop below $70 a barrel.
OPEC has the capacity to produce more than 2.5 million barrels a day if required, placing the cartel in a comfortable position.
Despite violence in the Middle East, OPEC has no plans of meeting prior to their scheduled meet in Vienna in September.
Daukoru claims that the present situation requires no OPEC emergency response.
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