OPEC oil surges to more than 100 dollars a barrel

The price of oil produced by OPEC countries has topped the 100-dollar-per-barrel mark for the first time, the cartel said on Wednesday.

OPEC's daily basket price, which is always published with a 24-hour delay and serves as the reference price for the Organisation of Petroleum Exporting Countries, rose to 100.57 dollars on Tuesday from 99.48 dollars the previous day, the cartel said in a statement.

The basket comprises 13 different crudes from all countries in the organisation, which produces about 40 percent of global oil supplies.

The OPEC price is tied to benchmark prices for light sweet crude oil, the highest quality crude, which are set on the main oil exchanges in London and New York.

In Asian trade on Wednesday, the New York benchmark price was close to its record of nearly 110 dollars, underpinned by the US dollar's dive to a new low against the euro and supply concerns.

London's benchmark crude for April delivery was just below 105 dollars, close to its record of 105.82 set on Tuesday.

OPEC is dominated by Saudi Arabia, the world's biggest oil producer, but also includes Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, the United Arab Emirates and Venezuela.

OPEC members each have a production quota that, in theory, limits their output to a level that is negotiated each time ministers from the organisation meet.

OPEC says the system is designed to stabilise the oil market by preventing wild fluctuations in prices, which makes investment in the industry easier and guarantees a reliable flow of petrodollars for exporters.

Critics charge that the group manipulates the market and is chasing crude prices to their record highs deliberately by restricting supplies when the market is sending a signal it needs more.

OPEC is under intense pressure from the United States to increase its production, but has declined to do so at its meetings, including one in Vienna last week.

Record oil revenues have sparked an investment boom in exporting countries, enabling huge domestic development programmes and encouraging national companies to go in search of foreign assets.