RIYADH, May 28: The surge in oil prices is being driven by political factors and there is no need for additional crude supplies, Saudi Arabia’s assistant oil minister said on Monday.

“What brings prices up is politics, what brings them down is politics,” Prince Abdul Aziz bin Salman bin Abdul Aziz told AFP, referring to tensions in major crude producers Nigeria, Iraq, Iran and Venezuela.

“We have a well-supplied market,” he said on the sidelines of a European-Gulf forum which ended on Monday with a debate on energy security.

“We have always said, and Opec has always committed itself to keep the market well-supplied and balanced. Never has this market been (more) balanced with crude than today,” said Prince Abdul Aziz, who is assistant oil minister for petroleum affairs.

He said that while there was no need for additional crude supplies, there is a problem with refining capacity. He was referring to what Saudi officials say is a need to invest in expanding refining capacity in consumer countries.

Opec kingpin Saudi Arabia was sticking to its output quota of 8.5 million barrels per day (bpd), he said.

Oil prices in London have risen to almost $72 a barrel, energised by simmering tensions over key crude producers Iran and Nigeria, and weak motor fuel stocks in the US.—AFP