28-02-08 World's leading gas producers are holding consultations on the creation of a gas organisation like the Organisation of Petroleum Exporting Countries (OPEC), just as crude oil surged to a record of $ 101 per barrel due to factors ranging from cold weather in Europe and the US as well as OPEC President's views that the group will not raise output at its next meeting.
Although Nigeria has abundant natural gas yet to be explored, it is not immediately known whether the country is a party to the said move.

But Iranian Ambassador to Russia, Gholamreza Ansari said that Tehran views the moves in a positive manner.
"Algeria, Iran, Qatar, and Russia are holding consultations on the creation of an OPEC-like gas structure, with the structure of the organization being the main topic on the agenda. We hope that the creation of a relevant organisation will be a result of the talks, which we view in a positive manner. We hope that the creation of this organisation will bring good not only to producers but also consumers, and will contribute to the efficient use of this type of energy," he said.

But crude oil prices surged to a record high as weakness in the US dollar, following a batch of gloomy economic data, spurred a broad-based rally across the commodities markets. Reports said strong heating fuel demand in Europe and the United States in the midst of a cold spell and signals from OPEC that the group will not raise production at its meeting added support to crude's gains, dealers said.
US crude gained $ 2.20 to a record $ 101.43 a barrel -- close to the inflation-adjusted peak of $ 102.53 hit in 1980. London Brent crude rose $ 2.34 to $ 100.03 a barrel.

"The weak dollar seems to be the biggest catalyst for this boost," said Mark Waggoner, president of Excel Futures Inc in Huntington Beach, California.
"We're seeing a broad-based price explosion in commodities right now," said Ralph Preston, senior market analyst with Heritage West Financial in San Diego, California.
The dollar tumbledto a record low versus the euro after reports showed US consumer confidence slumped to its worst level in five years while inflation soared among producers. While a weak dollar can sometimes trigger commodities buying as dealers seek to preserve nominal value in other currencies, worries about an economic slowdown have tempered oil's rally in recent weeks by dimming the outlook for global energy demand.

Energy traders also have been cautiously eyeing signals from the OPEC, ahead of its March 5 meeting in Vienna, Austria. But OPEC's President Chakib Khelil told that the group would agree not to raise production, in part because of fears of a demand slowdown.
"I can tell you they are not going to increase production because there are plenty of stocks," the OPEC President said.

Some oil market analysts believe a seasonal drop in demand could even lead OPEC to curb oil shipments unofficially.
"The recovery in (crude oil) stocks, the downward revisions to demand and an upcoming seasonal drop in worlddemand for the second quarter have not escaped OPEC's detection," Tim Evans, an analyst at Citi, said in a research note.
In the United States, crude oil supplies are forecast to have risen by 2.5 mm barrels, the seventh increase in a row, as refineries undergoing maintenance have built up stocks.