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OPEC will discuss market situation:Secretary General

Abdullah al-BadriTehran, Dec 1, IRNA - Secretary General of Organization of the Petroleum Exporting Countries Abdullah al-Badri said on Monday that OPEC member states would hold talks on stabilizing the oil market.

Addressing the 13th International Conference on Energy Management underway in Tehran, al-Badri said that oil market needs more careful supervision.

Referring to the world financial crisis and fluctuations in oil market, OPEC secretary general said that the developments have big impact on oil prices.

"OPEC member states should not be afraid of the present situation," he said adding that the right decisions can help tackle the problems in oil industry.

Al-Badri said that both oil consumers and oil producers should be concerned about investment in oil industry.

Due to the world economic crisis that will decrease the oil demand next year, the OPEC member states have to support oil market and adopt effective measures for bringing oil price stability, he said.

Referring to the countries whose economy rely on oil revenues, he said that oil prices should be high enough to bring rational income for them in order to foster sustainable development in oil industry.

Demand for crude oil would be 113 million barrels per day by the year of 2030 that will pose a major challenge to OPEC member states.

OPEC secretary general termed Iran as one of the countries having greatest world oil reserves that is playing active role in meeting oil challenges.

The 13th International Conference of International Energy Studies Institute titled "Energy Management" opened in Tehran on November 30 in presence of Oil Minister Gholam-Hossein Nozari and representatives from 17 countries.

OPEC weighs new production cut

Vienna, Dec 1, IRNA - As the world's big oil exporters struggle to trim production enough to boost prices as demand plummets, Saudi Arabia has contended that $75 now represents a "fair price" for a barrel of oil.

Meeting in Cairo, Egypt, over the weekend, ministers from the Organization of Petroleum Exporting Countries debated whether to make another deep output cut -- the group's third in four months -- when they meet in formal session in Algeria in mid-December.

Crash in commodity prices and demand in key markets such as the US caused the price of crude oil to fall more than 60% since its summer high, closing Friday at $54.43 a barrel on the New York Mercantile Exchange.

Saudi King Abdullah also used the $75-a-barrel price tag in an interview on Saturday with a Kuwaiti newspaper.

Other OPEC ministers seized on the $75 target, saying that current prices were too low to sustain needed investments in oil exploration and production in higher-cost areas.

OPEC has a spotty record when it comes to managing oil supplies to maintain a set price band.

Global oil demand looks likely to contract this year for the first time in 25 years, with more declines expected in 2009.

As it has several times in the past, OPEC is now calling on other big exporters outside the cartel to help curtail supply to stem the crash in prices.

Russia has suggested it wants to help OPEC buttress prices, but its output is already slipping as Russian production continues to fall because of aging fields and slowing investment.

The other big non-OPEC exporters, Mexico and Norway, also seem unlikely to rein in exports at a time of dropping oil revenue.

Mexico's production is falling on a decline in its biggest field, Cantarell.

All this sets the stage for OPEC's next formal session on December 17 in the Algerian port city of Oran, in what could be the group's most momentous meeting in years.

But just as important will be the latest data on how sick the world's economy looks going into 2009.

Having agreed to trim a total of two million barrels a day at its last two sessions in September and October, OPEC may need to cut back far more deeply in the months ahead if demand in the US, Europe and Asia continues to weaken.

... Payvand News - 12/01/08 ... --

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