Oil rises again after inconclusive summit

Oil prices rose again today, after emergency talks over the weekend between the worldÔÇÖs top oil powers and representatives from the major oil consuming nations failed to reach a concrete resolution.  ┬á The meeting in Jeddah, Saudi Arabia, was attended by energy ministers from more than 30 countries as well as senior executives from the world's largest oil companies, amid concerns that recent record oil prices are helping tip the US and other major economies towards recession.┬á┬á The US, UK and other major consumers of oil have urged producers to boost supply, blaming lack of capacity for the recent price surge. The Organisation of Petroleum Exporting Countries (OPEC), however, blames speculators, not lack of supply, for the rising prices. ┬á┬á US Energy Secretary Samuel Bodman said rising demand, especially from countries like China and India, was growing faster than supply and that this was pushing prices up. "I believe that most of us agree on one thing: Prices are too high at present," he said. "And unless we act, the situation will remain unsustainable." ┬á┬á Before the meeting, Saudi Arabia had pledged to lift daily quotas to 9.7 million barrels by the end of July, an increase of about 500,000 barrels since May. ┬á┬á In a statement issued at the end of the meeting, officials from OPEC oil exporters and consumers said "an appropriate increase in investment" in production was needed to ensure that the markets were "well supplied in a timely and adequate manner." ┬á┬á Appropriate, however, is a very relative term, and has certainly not satisfied the markets, with prices rising on the back of the announcement, even though Saudi Arabia did say it would be prepared to pump more oil "if demand for such quantities materializes and our customers tell us they are needed.ÔÇØ ┬á┬á ÔÇ£We are very concerned for consumers in all countries," Saudi King Abdullah bin Abdul-Aziz said at the meeting, "and we declare our readiness to meet any additional needs." ┬á┬á With the world's daily oil production around 80 million barrels, however, the market seems to be looking for a firmer commitment than that.  ┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á