Oil prices to touch $170/bbl in few weeks: OPEC

By Nayantara Rai, CNBC-TV18

India's proposal at Jeddah for a price band has not impressed OPEC. OPEC President Chakib Khelil feels that oil prices are going to go up to about USD 170 per barrel in the next few weeks.

OPEC dismissed a proposal from India recommending a price range for crude prices. It is not interested in a price band mechanism as it has not worked out in the past. It wants the oil market to decide the price. 

OPEC's rationale for rising crude prices is factors like the devaluation of the dollar, geopolitical problems and threats on Iran, speculators in financial markets, summer season in Europe, interest rate likely to be increased in Europe and demand to fall in winter. 

“Producers and consumers never agree on any price. They never agreed to the price band, then we did away with it. Now, they say we want to come back to the price band. We will sit around a table, we are never going to agree. So, let us leave it to the oil market to decide the prices,” said Khelil.