Business | Oil & Gas
Falling oil could force early Opec meeting
Angolan minister says energy group will have to go back to the drawing board if prices fall below $40.
- Reuters
- Published: 23:25 January 25, 2009
Luanda: Opec could meet before March if Brent crude oil prices fall to below $40 (Dh147) per barrel, the group's president was cited by Angolan weekly newspaper O Pais as saying.
Although Jose Botelho de Vasconcelos said he only expected the next gathering of the 12-member Organisation of Petroleum Exporting Countries to take place, as planned, in Vienna on March 15, he added the group could meet sooner if oil prices suddenly dropped.
Asked whether a fall in the price of Brent crude oil to below $45 per barrel would trigger an Opec meeting before March, he replied: "We admit it could happen if (oil prices) drop below $40."
Opec, which pumps about a third of the world's oil, agreed to cut its output by 2.2 million barrels per day (bpd) last month in reaction to a slide of more than $100 in oil prices since July as the global economic slowdown slams energy demand.
The latest cut helped oil prices recover from recent lows on Friday, although prices remain much below the head of Opec's 2009 target of $75 per barrel - a price Botelho de Vasconcelos says is necessary for oil exploration to be viable. London Brent rose $2.98 to $48.37 a barrel and US crude settled up 2.80 at $46.47.
"A reference price of $75 per barrel enables us to maintain and develop our activity ... and turn medium-to-long-term projects viable," Botelho de Vasconcelos, who is also the Angolan oil minister, said.
Asked if Opec would carry out more cuts if prices did not reach $75 per barrel in March, he replied: "We could continue to carry out more cuts."
He added that other oil-producing nations, such as Russia, Azerbaijan and Norway, which were not Opec members, were welcome to join as this would increase the impact of the its decisions.
"They have been invited. It is in the interest of everyone that oil prices reach a certain level," he said.
Share this article
More from Oil & Gas
More from Business
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Tight security for air show
Police announce measures to keep people and property safe
-
Nokia aims for 300m customers by 2012
Core focus will be on messaging, maps and navigation, music and applications
-
Court orders freeze on all Saad assets
Many UAE banks exposed to troubled conglomerate
