High oil price worries Opec

VIENNA - Opec producers are concerned by the recent rise in oil prices but believe the market is well supplied, Opec's president, Sheikh Ahmad al-Fahd al-Sabah, said yesterday.

The Organisation of the Petroleum Exporting Countries (Opec) will meet in the central Iranian city of Isfahan on March 16, with most members saying world prices are now too high to slice back output.

"Opec is concerned about this price development despite the fact that the market is well-supplied and global crude oil stocks have continued to build, now standing above their five-year average," Sheikh Ahmad said.

Opec was monitoring the market closely and would review the market outlook when it met in Isfahan "to ensure market stability at a reasonable price", he said.

"Opec's spare capacity now stands at more than 2 million bpd, and should exceed 3 million bpd by year-end with further capacity expansions expected in the coming years," he added.

- REUTERS