April 08, 2008	Tuesday	Rabi-us-Sani 1, 1429

LONDON, April 7: Oil prices soared above 109 dollars on Monday, close to record highs, after Opec oil exporters rejected Western calls to increase output and so ease the market, traders said.

New York’s main oil contract, light sweet crude for delivery in May, jumped 3.03 dollars to 109.26 dollars per barrel. Brent North Sea crude for May gained 2.30 dollars to 107.20 dollars.

“Oil futures were higher again, buoyed by OPEC’s reluctance to increase oil supplies,” said Sucden analyst Nimit Khamar.

“Despite the dollar recovering slightly today, oil prices have remained supported by comments from Opec over the weekend as it seems Opec are comfortable with crude prices being over 100 dollars a barrel.” In the foreign exchange market on Monday, the dollar recovered as some traders looked beyond recent gloomy US data, betting on a recovery of the US economy, a powerhouse of global growth, later in the year, analysts said.

In recent days and weeks, oil prices have gained on the back of a weak US currency, which makes dollar-priced crude cheaper for foreign buyers and therefore tends to stimulate demand.

Over the weekend, Opce secretary general Abdullah al-Badri rejected calls for an increase in crude output, saying that non-fundamental factors were to blame for current high prices.

“At the moment there is enough oil in the market and no need to change Opec output,” al-Badri said in Tehran late Saturday.

He blamed the “US economic recession, lack of refining capacity and depreciation of the dollar’s value” for record oil prices.

Al-Badri said that “the world’s oil stockpiles are now adequate for 53 days and this shows that there is no shortage.” US President George W. Bush has called on Opec and Saudi Arabia to hike output in response to the continued strength in prices.

New York crude hit a record intraday high of 111.80 dollars on March 17 and Brent 108.02 dollars last month on the back of the weak dollar and choppy world financial markets.-—AFP