Oil prices burst to new 13-year highs above $40 a barrel on Wednesday. U.S. light crude climbed to a peak at $40.38 a barrel. London Brent crude was up 14 cents at $37.50 a barrel.
OPEC President Purnomo Yusgiantoro of Indonesia said on Wednesday the cartel is already pumping more than two million barrels daily in excess of official supply limits in a bid to cool world oil prices. "We have not discouraged our members from producing more because we want to do everything we can to stabilise prices," Purnomo was quoted as saying in a statement released from OPEC headquarters. The statement will underline concerns in the market about how much actual extra oil OPEC will release should it decide to lift production quotas when ministers meet on June 3 in Beirut. Ministers are considering raising official production limits from 23.5 million bpd after Saudi Arabia proposed lifting quotas by at least 1.5 million bpd.
