(THISDAY) The Organisation of Petroleum Exporting Countries (OPEC) has said it is supplying the market with enough crude oil but political situations are responsible for the current high oil prices.President of the organisation cum Iraq's Oil Minister, Abdul Kareem Luaiby, told reporters in Baghdad that oil prices were affected more by political instability than by production matters. He however noted that OPEC was seeking to achieve a balance in world oil prices."OPEC has exerted all it can to produce a quantity of oil that is balancing demand, but political situations are governing prices", Dow Jones Newswires quoted the OPEC Chief to have told reporters in Baghdad.But hope of a reprieve from soaring oil prices mounted at the weekend as Saudi Arabia claimed fellow members of the OPEC  were working on bringing down the cost of crude.

Oil continued its week-long surge at the weekend, sending Brent crude above $120 a barrel and fuelling fresh concerns about the cost of petrol. "We are seeing a prolonged period of high oil prices," the Saudi Oil Minister, Ali al-Naimi, was quoted by The Independent to have said. He added: "We are not happy about it. Saudi Arabia is determined to see a lower price and is working towards that goal." Higher output from the Saudis helped to break a two-year cycle of tightening supply conditions in the oil market, according to the International Energy Agency's latest report. But Brent crude has still risen about 13 per cent this year, with oil trading above $100 for all but a handful of days, stirring fears the surging cost will threaten the global economy's recovery. Concern about the tensions in Iran have supported oil prices for months, with some analysts estimating they have added $10-$15 a barrel. Other factors include concerns about a supply shortage due to production problems.