Oil Soars Beyond $129 After OPEC Warns It Won't Increase Output

New York, NY (AHN) - The price of oil has risen over $129 per barrel after a new statement from the Organization of the Petroleum Exporting Countries (OPEC) explaining that the group will not increase output to satisfy the soaring demand.

One barrel of light crude hit $129.31 on the New York Mercantile Exchange before slipping back to $128.70. According to investors such as T. Boone Pickens, oil prices could top $150 before New Year's.

Analysts also believe the recent earthquake in China could force Beijing to import more oil to fuel recovery and rebuilding efforts, further buoying the price of crude.

Aimed at coordinating and unifying petroleum policies among its member-countries to ensure "fair and stable prices for petroleum producers," OPEC, led by its president Chakib Khelil, had said speculations are causing the oil price hikes.