BRUSSELS, Belgium (AP) -- OPEC President Chakib Khelil said Tuesday that oil producers saw no need to raise supply and blamed record oil prices on factors outside the cartel's control, such as U.S. pressure on Iran and the weak U.S. dollar.
Speaking after talks with European Union nations, Khelil said oil states believe they are pumping enough oil to satisfy demand and there is also stock and capacity to spare.
Oil prices rose above $138 a barrel during trading on Tuesday, less than $2 away from crude's trading record on the faltering dollar, Mideast tensions and concerns over supply disruptions out of Nigeria.
Khelil said prices in the next few weeks depend largely on how the U.S. deals with Iran and the strength of the U.S. dollar.
"I think the market is probably waiting to see how the dollar is going to evolve in July, how the geopolitical situation is going to evolve with the threats made on Iran," he said.
Khelil blamed high prices on the U.S. mortgage crisis. Banks became fearful of lending to each other last summer when complex securities based on U.S. housing loans to people with poor credit emerged as far more risky than first believed.
He also pointed at traders who have turned to commodity markets, such as oil, when they fail to find good returns in areas such as currency exchange.