Oil Prices hit $30 level

Crude oil prices in the international market reached US$30 a barrel again ass the Organization of Petroleum Exporting Countries (OPEC) delayed a plan to put more supplies in the rallying market.

According to Reuters report from London on Monday morning, Brent crude oil prices passed the $30 level. Brent for July futures opened at $29.85 a barrel, or increasing by $0.027, and at one point reached $30.20, or increasing $0.062).

In the New York Mercantile Exchange (NYME), crude oil prices had settled at $30.40 per barrel, or rising by $0.020 compared to Friday's close.

In Singapore market, crude oil for July contract was quoted at $30.30 per barrel.

Brent crude oil in the International Petroleum Exchange (IPE) futures bourse also rose in line with other markets, quoted at $29.58 a barrel.

Brokers said the rising crude oil prices in the international market was caused more by market actions of OPEC members for not implementing their agreement to supply more crude to the market until June 21.

Besides OPEC market action, analysts also closely watch development in Nigeria, where oil workers staged a strike. Most of Nigeria oil is destined for American market.

OPEC members have agreed to supply an additional 500,000 barrels per day to the market when oil prices average at $28 a barrel level for 20 days.

OPEC secretary general Rilwanu Lukman has said that OPEC members would likely not implement their commitment to supply more crude until OPEC ministerial meeting slated for June 21.

Lukman said despite the rising prices, oil supply is not tight at all.

Sources told Reuters that Arab Saudi, the OPEC's bellwether, has prepared a proposal for an increase in OPEC output. The proposal will be tabled at the next OPEC ministerial meeting. (*)