No need for OPEC to boost oil output: Qatar

By Simon Webb

DUBAI (Reuters) - More crude supply from OPEC would do little to ease $80 oil as speculative investment flowing into the market from other assets is boosting the price, Qatar's oil minister said on Monday.

U.S. crude was trading at $81.43 a barrel on Monday. The price has been above $80 for much of the last three weeks, despite OPEC's agreement on September 11 to boost output by 500,000 barrels per day from November 1.

"I am confident that the price is not related to supply," Qatar's Oil Minister Abdullah al-Attiyah told Reuters by telephone. "We increased at the last OPEC meeting and were confident that it would help the market, but unfortunately the market is moving in a different direction. More oil won't help at all."

Members of the Organization of the Petroleum Exporting Countries (OPEC) were not in consultations at the moment about boosting oil supply, he said.

Two weeks ago, an OPEC source told Reuters the producer group would hold talks about a further supply boost if the price stayed above $80 for several weeks.

Attiyah said he did not know if OPEC would consult on output before the heads of state of its 12 members gather at a summit in Riyadh in November. Oil ministers were due to meet ahead of the summit.

The global credit crunch had encouraged investors to switch to oil from other assets, Attiyah said.

"Our increase in output could not overcome the investment flow switch," he said. "Investors believe oil is safer than some others (assets)."