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Crude hits $117 as OPEC rules out lifting output

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Date: Monday 21 Apr 2008

LONDON (ShareCast) - Crude oil prices rose to a record level above $117 a barrel after OPEC rejected calls from UK and Japan to raise production.

Oil prices rose as Nigerian output fell after rebel attacks on operations, while threat of a strike action at the Grangemouth refinery in Scotland also impacted prices.

Crude oil for May delivery hit a record $117.60 a barrel at the New York Mercantile Exchange.

OPEC president Chakib Khelil said there was no need to increase oil output because supply and demand were balanced.

UK prime minister Gordon Brown said last week that oil-consuming countries should call on producing nations to step up production. An official from the oil and gas division of the Japanese Ministry of Economy, Trade and Industry yesterday urged Saudi Arabia to cooperate on stabilising the oil price.

The Movement for the Emancipation of the Niger Delta said it sabotaged one of Shell’s Nigerian pipelines last week and promised further attacks. Shell said the attack reduced production by 169,000 barrels a day.

In Scotland, the Unite Union said that a planned strike over pensions by its members at the Ineos-operated refinery in Grangemouth, could disrupt fuel supplies to airports and garages