OPEC says oil supplies not the problem

WASHINGTON (Reuters) -

OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.

"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the

International Monetary Fund's policy committee on behalf of the oil cartel.

"The healthy situation on the supply side is further demonstrated by OECD crude oil inventories, which are at comfortable levels both in absolute terms and in days of forward cover, while U.S. commercial crude oil stock levels have reached their highest levels in eight years," he added, referring to the 30-nation Organization for Economic Cooperation and Development.

Crude prices leapt to a new peak over $75 a barrel on Friday, spurred by persistent worries a showdown over

Iran's nuclear program could wind up disrupting supplies.

Oil-consuming nations have urged more spending to boost production. In the latest plea, finance officials from the Group of Seven rich nations on Friday cited oil prices as a potential stumbling block for the global economy.

However, U.S. Energy Secretary

Samuel Bodman said on Friday he agreed with the assessment that markets are well-supplied and would not call on OPEC to boost production at talks between major producers and consumers in Doha, Qatar, this weekend.

The April 22-24 Doha gathering brings together ministers from 65 nations with top executives of oil firms in an effort to find ways to bring oil prices down to earth.

Shihab-Eldin said uncertainties over future demand were complicating investment decisions and "increasing the risks associated with both under- and over- investment." He said the need for "appropriate investment" extended to the entire supply-chain.

He drew a distinction between the ample supplies on the crude side and tight supplies of refined products.

"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.

"As a result, any shortage caused by technical or logistic problems will continue to have a significant impact on the global market, affecting products prices and, consequently, crude oil prices," he added.

Shihab-Eldin lamented that ample crude stocks had failed to tamp down oil price volatility stemming from unexpected supply disruptions or geopolitical concerns.

"Unfortunately the upward rising trend indicates that healthy market fundamentals have been unable to outweigh fears of possible future supply disruptions," he said.

He said the breakdown in the link between inventories and prices had led to an "urgent" need to identify more-reliable signals of price trends. He also said OPEC was concerned over the impact lofty oil prices could have on developing countries, and would monitor development closely.