OPEC Secretary-General Ali Rodriguez said yesterday the exporting cartel would boost output only in the event of a supply shortage and had no control over speculation currently driving oil prices higher.
Speaking to BBC radio, he said OPEC would be taking a big risk if it opened up the taps now when demand for crude was low.
"We have to wait and see the situation because if we increase production now and the situation returns to normal maybe we can face a collapse of prices," he said, referring to Middle East violence which has fuelled oil market speculation.
"In this moment the fundamentals are balanced. The supply is satisfactory. In this quarter normally for seasonal reasons the demand is lower than in the rest of the year," Rodriguez said.
Asked if OPEC was prepared to see the oil price stay at around US$27 or higher, Rodriguez said: "If this is the result of speculation yes. If it is the result of some shortage of supply we will take some kind of action."
Analysts believe escalating Middle East tensions have added up to US$5 war premium to oil prices.
"Maybe somebody has to act in order to correct the high level of speculation," Rodriguez said.
Asked what can be done, he added: "I don't know. Because this is absolutely out of our control."
He said OPEC had received no proposal to impose an oil embargo in retaliation for the US' perceived support for Israel in its conflict with Palestinians.
"The organization did not receive until now any concrete proposal to use oil as a weapon. OPEC never applied this kind of embargo."
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