OPEC head concerned about oil market volatility

OPEC head Abdalla Salem el-Badri on Wednesday said he was worried about volatility in the oil market as prices soared through the historic 130 dollars level for the first time.

"The Secretary General expressed concern about the volatility that has characterised the market in recent times," the Vienna-based cartel said in a statement from Caracas, where el-Badri met Venezuelan President Hugo Chavez as part of a weeklong working visit to OPEC members Venezuela and Ecuador.

Following his meeting with Chavez, el-Badri said, "The crude oil market remains well-supplied, with (developed world) stocks increasing above their five-year average.

"OPEC will continue to strive to bring stability to the oil market," the statement said, noting that el-Badri "also called on other stakeholders in the industry -- consumers, producers, investors -- to cooperate to find a lasting solution to the volatility."

El-badri stressed that OPEC remained committed "to working for the stability of the international oil market, noting that the current high oil prices are not influenced by market fundamentals, as the market is well supplied.

"OPEC will continue to monitor global oil markets regularly and is ready to act if and when necessary to ensure market stability and adequate supplies," the statement added.

OPEC has repeatedly said that the market is well supplied and that record prices reflect speculative investment activity rather than underlying supply and demand conditions.