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Oil prices jump on OPEC comment

(Xinhua)
Updated: 2008-06-27 00:06

NEW YORK  -- Crude futures surged Thursday morning after OPEC predicted that oil prices will continue to rise and OPEC member Libya threatened to cut production.

Light, sweet crude for August delivery rose 3.79 US dollars to 138.34 dollars a barrel as of 10:16 EST (1416 GMT) on the New York Mercantile Exchange, after topping 138.95 dollars a barrel earlier.

OPEC President Chakib Khelil said Thursday the European interest rate rise might send oil surging to 170 dollars a barrel. Meanwhile, Libya's national oil company said it might curb output because of oversupply.

Oil prices have been moving between 131 dollars a barrel and 139 dollars a barrel since June 6, and an all-time peak of 139.89 dollars a barrel was reached on June 16.