Opec blames West for high oil prices

Saudi Arabia could puncture Opec's appearance of unity

Leaders of the oil-producing cartel Opec have closed their summit with a call for industrialised nations to do more to tackle poverty and debt problems in developing countries.

But the leaders said nothing about taking new steps to reduce oil prices, which are currently at a 10-year high.

They also urged the West to help consumers by alleviating the burden of "excessive taxation" on petroleum products.

Excessive taxation on petroleum products accounts for the highest share of the final price to the consumers

Opec summit declaration

But despite this appearance of unity at Caracas, Saudi Arabia, Opec's largest member, indicated that it was prepared to break ranks to increase output in order to help ease prices.

At the summit, attended by heads of state or senior officials from all its 11 member states in the Venezuelan capital Caracas, Opec re-iterated its commitment to what it has called a fair and stable price for a barrel of oil.

That has been taken to mean a range of between $22 - $28 a barrel, which Opec has said it would like to achieve.

Western pressure

The United States and European nations want a lower price and have been ratcheting up the pressure on Opec to increase output to bring prices down.

Oil prices have more than doubled in the past 18 months, sparking protests across Europe.

Crown Prince Abdullah indicated that Saudi Arabia could go it alone

Last week, the United States released 30 million barrels from its strategic reserves - the first time it had taken such action since the Gulf War.

But in their summit declaration, Opec leaders said they were not to blame for the high prices petrol consumers were having to pay.

"Excessive taxation on petroleum products accounts for the highest share of the final price to the consumers in the major consuming countries," the declaration said.

Price drop

After the summit closed, oil was trading at just over $30 a barrel, a 4% drop from earlier in the week.

The price fall was triggered by a pledge on Thursday from Opec's largest producer, Saudi Arabia, to pump more oil if prices remain high, particularly over the winter months.

"The kingdom is willing and ready to offer the amount necessary to stabilise the world oil market," Saudi Crown Prince Abdullah said at the summit.

Saudi Arabia has said it wants prices of about $25 a barrel and it is the only Opec state with substantial spare production capacity.