The meeting of the Organization of the Petroleum Exporting Countries (OPEC) members and oil consumers in Saudi Arabia has failed to produce any solution to check rising oil prices.
Speaking at the meeting, India's Finance Minister P Chidambaram called for a fixed price band. Saudi Arabia has promised to increase production from 12 million barrels to 12.7 million barrels by the month of September.
However, OPEC remained skeptical and was divided on the issue of raising production.
The rising oil prices have fuelled protests across the world. And now rising oil prices are causing heartburn within the Organization of the Petroleum Exporting Countries.
The meeting of OPEC members called by Saudia Arabia wound down without arriving at any clear formula.
Chidambaram reiterated in the meeting that the consuming countries must guarantee that oil prices will not fall below an agreed level and producing countries must guarantee that oil prices will not rise above a guaranteed level.
Countries such as China and Britain stressed on the need to find new sources of energy. However, they were all unanimous on one issue that oil prices have to come down.
“In order to continue our constructive role in the market, and to further reassure those who are concerned about supply availability, the Kingdom is prepared to make additional quantities of crude oil available to the market,’ says Saudi Arabia Minister Of Petroleum, Ali Naimi.
OPEC president Chakib Khelil however chose to differ and claimed there was enough oil in the market to meet the demand. He said OPEC would consider the issue of raising production only in September, when they meet.
Meanwhile, with OPEC refusing to increase production, the world it seems will have to bear with the rising fuel prices.