Risk premiums blamed for price rise
Mumbai, September 12, 2007
Elevated oil prices are partly due to risk premiums, not fundamental factors, the deputy governor of the Saudi central bank said on Wednesday.
"I think higher oil prices have a lot to do with risk premium from geopolitical uncertainties and from low oil refinery capacities in the major industrial countries," Mohamed al-Jasser said at a banking conference.
Oil was trading above $78 a barrel, close to its record high, after Opec's token output increase on Tuesday failed to allay worries about falling inventories during the coming winter. - Reuters
More Energy, Oil & Gas Stories
- Oil prices set for biggest weekly loss
- Egypt to issue smart cards to fuel stations
- Oil hits three-week low
- Yokogawa-Petrobras in wireless deal
- Technip wins Adma-Opco contract
- Brent weakens towards $102
- ASAR named legal advisor for Kuwait project
- BP to invest $2.85bn in Iraq's largest oilfield
- 200 firms gear up for Saudi Energy
- Siemens wins $266m jobs from Saudi Electricity