OPEC President Doesn't Rule Out $200/Bbl

LONDON, April 28, 2008 (Dow Jones Newswires)

Chakib Khelil, president of the Organization of Petroleum Exporting Countries, doesn't rule out $200 a barrel oil, Algerian state newspaper El Moudjahid reported on its Web site.

Khelil didn't put a timeframe on the possibility of $200 a barrel oil.

Khelil was also quoted as saying "prices are high because of the U.S. recession and the economic crisis that has affected many countries, a situation that influences the dollar slide.

"Every time the dollar drops by 1%, the price of a barrel rises by $4 and reciprocally," he said.

But he also said "if the dollar strengthens by 10%, one can bet (oil) prices will drop by $40" a barrel.

Monday, the OPEC weekly basket hit a record high at $110.13 a barrel. The spike followed a U.K. refinery strike that shutdown a key North Sea pipeline as well as new output disruptions in Nigeria.

LONDON, April 28, 2008 (Dow Jones Newswires)