OPEC is organising a meeting to review turmoil in the world oil market and decide whether another crude output cut is needed to prevent prices spiralling even lower. It appears unlikely that the oil exporters’ cartel would slash production at the gathering, as many ministers indicated they would prefer to wait until next month’s scheduled meet in Oran on the Algerian coast. Several OPEC ministers, including Iran, Qatar and Nigeria, also support the idea of deferring a decision until December 17 in Oran. Venezuelan Oil Minister Rafael Ramirez said OPEC should cut production by “at least one million barrels” a day before the year-end. The slash in output could damage the world economy, which is still reeling from the global financial crisis and accompanying credit crunch. On the other hand, the current oil price of about 50 dollars a barrel makes it more difficult for most OPEC countries to balance their books. Oil prices have gone down since striking record high points above 147 dollars a barrel in July. It is understood that the speculators of the futures market are playing havoc with oil pricing. OPEC is likely to agree to keep the price of oil around 75 dollars a barrel.
OPEC SET TO BIDE TIME OVER OUTPUT CUT
OPEC is organising a meeting to review turmoil in the world oil market and decide whether another crude output cut is needed to prevent prices spiralling even lower.
