Oil producing group Opec is watching the situation in Egypt but will only add more supply to the oil market if there is a real shortage, secretary general Abdullah al-Badri said today.
Oil prices have spiked due to tension in Egypt with Brent crude approaching $100 per barrel on fears instability could spread to the Middle East, which together with North Africa produces more than a third of the world's oil.
Speaking in London, Mr al-Badri said he did not expect the unrest in Egypt to affect oil flows through the Suez canal or the Sumed pipeline.
"I think that the flows will continue," he said. "We are watching the situation because there is some good quantity (at stake) and if there is a problem there we have to do something," he told reporters at a conference in London.
"Inventories are very high and our spare capacity is also 6 million barrels. I don't see why we have this high price," he said. "The market is well supplied but at the same time if we see some real shortage we will intervene."
Reuters