LONDON - Pressure is mounting within OPEC to reduce supplies after oil prices have fallen by nearly 50 percent, from a record of $147.27 hit in July, and expectations have mounted that global recession will erode fuel demand.
The Organization of the Petroleum Exporting Countries has called an emergency meeting on November 18 in Vienna to discuss the impact of economic weakness on oil markets.
U.S. crude last week touched a 13-month low of $77.09 a barrel and the price for OPEC's basket of crude on Friday stood at $72.67 a barrel.
Early on Monday, U.S. crude prices recovered to above $81.
Levels are still well below a threshold of $100 some OPEC countries have said they favored.
The following brings together the latest comments from OPEC members.
Saudi Arabia, OPEC's leading producer and the only one to be pumping significantly above its output target, has yet to make any public comment.
OCT 12
OPEC President Chakib Khelil said the next OPEC meeting would study measures to balance the world oil market over the next six months in the context of a weakening global economy.
"The essential thing for OPEC is to find a balance between supply and demand," Algeria's official news agency APS quoted him as saying.
He said the current oil price reflected the true balance of supply and demand following the departure of speculators from the market.
Iranian Oil Minister Gholamhossin Nozari said that unless OPEC acted decisively to arrest the current slide in oil prices, investment conditions in the oil industry would be hit severely.
"At this meeting our country's request (for OPEC) to cut production and the members' crude quotas will be submitted," Nozari told the Iranian newspaper the Poul daily.
But the country's OPEC governor said Iran would have to study all the relevant factors.
"It is not fair to say so early. That is why we should consider all factors carefully and look at the supply-demand balance," OPEC governor, Muhammad Ali Khatibi told Reuters.
He said it was especially troubling how deep oil prices had fallen compared with other financial indexes.
"Oil prices have fallen more than 40 percent and the decline is not comparable to other financial indexes," he said.
OCT 8
Iraqi Oil Minister Hussain al-Shahristani told Reuters OPEC might need to consider cutting oil output if the price of crude remained below $90.
"We are now looking at the market and if there are any future declines below $90 we will need to consider taking action."
Nigerian Oil Minister Odein Ajumogobia told Reuters OPEC might need to intervene to balance the oil market if the price of crude continued to slide.
"There may be a need to intervene to balance the market if the price slide seemingly predicted on (lower) demand and over-supply continues," he said.
An OPEC source said the group was unlikely to cut output at its meeting in December unless the price for crude produced by its members fell below $80 a barrel.
"The price is still reasonable," the source told Reuters. "If it stays where it is then OPEC will stick to the output levels decided at the last meeting. I think if it falls below $80, OPEC will do more."
Qatar's Oil Minister Abdullah al-Attiyah told Reuters OPEC would cut supply to balance the market if the global financial crisis slowed demand.
"If the market needs a cut, we will cut," he said. "We will supply what the market needs. With the slowing economy, maybe we will see a fall in demand, but it's not clear yet."
OCT 7
The top oil official for Libya told Reuters OPEC might need to act.
"If this volatility continues, OPEC will have to do something," Shokri Ghanem, chairman of Libya's National Oil Corporation, told Reuters by telephone.
"For oil-producing countries, not only are prices going down, but also their money in the banks, their investments are threatened by this financial crisis."
Iran's OPEC governor said the deepening global financial crisis was having a bigger impact on oil demand growth than previously expected.
"We are worried about demand," Muhammad Ali Khatibi told Reuters in an interview. "The financial crisis is deeper than we expected and this is definitely influencing world oil demand."
Ecuadorean Oil Minister Galo Chiriboga said OPEC would analyze the impact of the global financial crisis on oil demand and set production levels accordingly.
"OPEC has to analyze and set production in accordance to demand," Chiriboga told reporters.
Iraq's oil minister said OPEC members were worried by the drop in the price of oil to around $90 a barrel.
"In Iraq, we think the fair price is $100. When it was $140, it was too high and could have had negative effects on some economies ... but the fall to below $100 will put pressure on the budgets to countries like Iraq which needs lots of money for reconstruction after years of wars," he said.
Iran's Oil Minister Gholamhossein Nozari said producers were pumping too much oil and a price under $100 was too low.
"$100 and below is not suitable for oil producers or oil consumers," Nozari told reporters.
The Organization of the Petroleum Exporting Countries has called an emergency meeting on November 18 in Vienna to discuss the impact of economic weakness on oil markets.
U.S. crude last week touched a 13-month low of $77.09 a barrel and the price for OPEC's basket of crude on Friday stood at $72.67 a barrel.
Early on Monday, U.S. crude prices recovered to above $81.
Levels are still well below a threshold of $100 some OPEC countries have said they favored.
The following brings together the latest comments from OPEC members.
Saudi Arabia, OPEC's leading producer and the only one to be pumping significantly above its output target, has yet to make any public comment.
OCT 12
OPEC President Chakib Khelil said the next OPEC meeting would study measures to balance the world oil market over the next six months in the context of a weakening global economy.
"The essential thing for OPEC is to find a balance between supply and demand," Algeria's official news agency APS quoted him as saying.
He said the current oil price reflected the true balance of supply and demand following the departure of speculators from the market.
Iranian Oil Minister Gholamhossin Nozari said that unless OPEC acted decisively to arrest the current slide in oil prices, investment conditions in the oil industry would be hit severely.
"At this meeting our country's request (for OPEC) to cut production and the members' crude quotas will be submitted," Nozari told the Iranian newspaper the Poul daily.
But the country's OPEC governor said Iran would have to study all the relevant factors.
"It is not fair to say so early. That is why we should consider all factors carefully and look at the supply-demand balance," OPEC governor, Muhammad Ali Khatibi told Reuters.
He said it was especially troubling how deep oil prices had fallen compared with other financial indexes.
"Oil prices have fallen more than 40 percent and the decline is not comparable to other financial indexes," he said.
OCT 8
Iraqi Oil Minister Hussain al-Shahristani told Reuters OPEC might need to consider cutting oil output if the price of crude remained below $90.
"We are now looking at the market and if there are any future declines below $90 we will need to consider taking action."
Nigerian Oil Minister Odein Ajumogobia told Reuters OPEC might need to intervene to balance the oil market if the price of crude continued to slide.
"There may be a need to intervene to balance the market if the price slide seemingly predicted on (lower) demand and over-supply continues," he said.
An OPEC source said the group was unlikely to cut output at its meeting in December unless the price for crude produced by its members fell below $80 a barrel.
"The price is still reasonable," the source told Reuters. "If it stays where it is then OPEC will stick to the output levels decided at the last meeting. I think if it falls below $80, OPEC will do more."
Qatar's Oil Minister Abdullah al-Attiyah told Reuters OPEC would cut supply to balance the market if the global financial crisis slowed demand.
"If the market needs a cut, we will cut," he said. "We will supply what the market needs. With the slowing economy, maybe we will see a fall in demand, but it's not clear yet."
OCT 7
The top oil official for Libya told Reuters OPEC might need to act.
"If this volatility continues, OPEC will have to do something," Shokri Ghanem, chairman of Libya's National Oil Corporation, told Reuters by telephone.
"For oil-producing countries, not only are prices going down, but also their money in the banks, their investments are threatened by this financial crisis."
Iran's OPEC governor said the deepening global financial crisis was having a bigger impact on oil demand growth than previously expected.
"We are worried about demand," Muhammad Ali Khatibi told Reuters in an interview. "The financial crisis is deeper than we expected and this is definitely influencing world oil demand."
Ecuadorean Oil Minister Galo Chiriboga said OPEC would analyze the impact of the global financial crisis on oil demand and set production levels accordingly.
"OPEC has to analyze and set production in accordance to demand," Chiriboga told reporters.
Iraq's oil minister said OPEC members were worried by the drop in the price of oil to around $90 a barrel.
"In Iraq, we think the fair price is $100. When it was $140, it was too high and could have had negative effects on some economies ... but the fall to below $100 will put pressure on the budgets to countries like Iraq which needs lots of money for reconstruction after years of wars," he said.
Iran's Oil Minister Gholamhossein Nozari said producers were pumping too much oil and a price under $100 was too low.
"$100 and below is not suitable for oil producers or oil consumers," Nozari told reporters.
