OPEC Secretary-General Mr Ali Rodriguez says he expects oil prices to fall after US President George W. Bush calmed market fears of a widening conflict in the Middle East.
After conversations with OPEC ministers over the past few days, Mr Rodriguez said the cartel did not want to react to speculative pressures, which he thought had added a $5-$6 per barrel premium on the price.
Brent crude oil hit a six-month high of $28.15 per barrel yesterday, before falling after Mr Bush's speech in which he called on Israel to withdraw troops from Palestinian controlled areas.
"My opinion is that there should be no increase in production if prices rise due to speculation. If there is demand growth and the market needs more oil, of course we should do so," Mr Rodriguez said today.
Mr Rodriguez said he did not expect OPEC to raise output at its next meeting scheduled for June.
"I don't think there will be an increase this year unless there is a war or something," he said. "If there is any increase at all it will be very small".