Pressure on Opec for output boost

PRESSURE is mounting on the Organisation of Petroleum Exporting Countries (Opec) cartel to boost output in order to put a brake on soaring oil prices.

Iran, a key Opec producer, yesterday gave guarded support to a call from Saudi Arabia for an extra 1.5m barrels a day.

Opec will meet this week to discuss the situation after the cost of crude leapt to $41.50 a barrel in New York on Friday.

Fears are mounting that the oil price, now at a 21-year high, will destabilise world economic growth.

Oil prices have spiralled upwards because of tight supply and fears about security in Iraq and elsewhere. At the same time, demand from China and the US has proved stronger than expected.

Separately, it emerged that Iraq is to recreate a national oil company before the US hands power to a new Iraqi government on 30 June.