A brief dip in the price of oil after the US military killed al-Qaida’s leader in Iraq did not last long.
US light crude was soon back over 71 dollars a barrel, despite Nigerian militants saying the would release foreign oil company worker hostages and an easing of tensions over Iran’s nuclear programme.
Oil costs nearly a third more than it did a year ago and Christophe de Margerie, Vice-President of Total, told Euronews he sees no long term change.
He said: “For the time being, there’s enough oil to meet demand, but there’s not enough production capacity available to cover what could appear to be a major risk of a possible crisis in a number of producer countries. As long as that situation remains – that is with strong demand and limited production capacity – limited in terms of the demand they need to meet – we’ll stay in this range of high oil prices.”
Iraq is struggling to pump two million barrels per day less than the 2.5 million barrels a day it was producing before the US-led invasion in 2003.
Analysts say the killing of the al-Qaida leader there Abu Musab al-Zarqawi will not end attacks on the country’s oil industry.