MADRID, July 1 (Xinhua) -- The Organization of Petroleum Exporting Countries (OPEC) President Chakib Khelil said on Tuesday threat against Iran and a weakening U.S. dollar were the major forces behind oil price hike.

    At a press conference on the sidelines of the World Petroleum Congress in Madrid, Khelil insisted that high oil prices were not caused by a lack of supplies, rebuffing the claim by some oil consuming countries.

    Instead, the OPEC chief attributed the price hike to the devaluation of the U.S. dollar and accompanying market speculation, the geopolitical situation including the tension between Iran and the West, and the impact of bioethanol which had lowered diesel production.

    "We will not see lower oil prices without finding solution to possible war threats in certain oil producing areas," Khelil said.

    There was "a need to do something about geopolitics and the dollar," he added.

    Khelil warned if Iran get attacked, the oil price could rise even further since the oil-rich country's disrupted production may not be compensated.

    "It is obvious that if you curtail 4 million barrels per day from the market, you are going to have a big problem," he said. "Ido not see who can replace that, including OPEC."

IEA warns of tight oil market in medium term

    MADRID, July 1 (Xinhua) -- The International Energy Agency (IEA)warned on Tuesday of a tight oil market in the medium term till 2013, blaming market fundamentals rather than speculation for the record high prices.

    In its annual medium term oil market report, which was presented here Tuesday, the Paris-based IEA said the oil market will remain tight in the medium term, although soaring prices and slower economic growth are reducing demand rise. Full story

OPEC chief: Developing economies face oil price dilemma 

    MADRID, July 1 (Xinhua) -- Developing countries are facing a dilemma in managing oil prices on their home market, Chakib Khelil, president of the Organization of Petroleum Exporting Countries (OPEC), said here on Tuesday.

    Speaking at a plenary session of the on-going 19th World Petroleum Congress in Madrid, the OPEC chief said that with the different economic bases and purchasing powers it is irrational to let people from the developing countries have the same price as those in developed ones. Full story

News Analysis: Oil prices hike: is speculation all to blame?

Traders work at the New York Mercantile Exchange in New York, the United States, June 27, 2008. (Xinhua Photo) Photo Gallery>>>

    NEW YORK, June 28 (Xinhua) -- Oil prices broke the 140 U.S. dollars level for the first time this week, with August crude surging near 143 dollars a barrel on both New York Mercantile Exchange (NYMEX) and ICE Futures Exchange in London.

    While oil has gained more than 40 percent this year, more and more people now shift their focus onto the role of speculators in the price hike. But is it all because of speculation? Full story 

OPEC concerned about future demand of oil

    MADRID, July 1 (Xinhua) -- The Organization of Petroleum Exporting Countries (OPEC) was concerned about future demand when considering whether to boost investment in oil production, the cartel's president said on Tuesday.

    "The concern we have is about the security of demand," Chakib Khelil told delegates here at the World Petroleum Congress, which is the biggest gathering of leaders from the world oil producers in every three years. Full story