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Oil Prices Cannot Stay at Low Levels: Iraq
Reuters
March 8, 2009
AMMAN - Iraqi Oil Minister Hussain Al Shahristani said on Saturday oil prices could not continue at such low levels and that Opec may look into an output cut at the group’s next meeting in Vienna.
“Oil prices cannot continue at these low levels. The oil market has slowly and gradually picked up in the last two months. We hope it will continue,” Shahristani told reporters in the Jordanian capital, Amman.
“Opec producers might look into an oil cut in Vienna if there’s a surplus with no demand,” he said.
Some members of the Organisation of the Petroleum Exporting Countries have already raised the prospect that it may cut its oil output further to boost oil prices at a March 15 meeting.
Opec has agreed to lower its production by a total of 4.2 million bpd, about five per cent of daily world demand, since last September to bolster prices and counter declining consumption.
Oil settled more than four per cent higher on Friday as expectations that Opec could reduce output again outweighed weak US economic data.
US crude CLc1 settled at $45.52 a barrel, while London Brent crude LOCc1 settled at $44.85.
“So far the quantities of production are more than demand. There’s a big drop in demand and so when the present production is more than the supply there is no choice but to reduce production,” Shahristani said.
“When Opec looks into output cuts, this is not to embarrass the market.”
Shahristani added that non-Opec producers needed an oil price of $70 to be able to continue production.
March 8, 2009
AMMAN - Iraqi Oil Minister Hussain Al Shahristani said on Saturday oil prices could not continue at such low levels and that Opec may look into an output cut at the group’s next meeting in Vienna.
“Oil prices cannot continue at these low levels. The oil market has slowly and gradually picked up in the last two months. We hope it will continue,” Shahristani told reporters in the Jordanian capital, Amman.
“Opec producers might look into an oil cut in Vienna if there’s a surplus with no demand,” he said.
Some members of the Organisation of the Petroleum Exporting Countries have already raised the prospect that it may cut its oil output further to boost oil prices at a March 15 meeting.
Opec has agreed to lower its production by a total of 4.2 million bpd, about five per cent of daily world demand, since last September to bolster prices and counter declining consumption.
Oil settled more than four per cent higher on Friday as expectations that Opec could reduce output again outweighed weak US economic data.
US crude CLc1 settled at $45.52 a barrel, while London Brent crude LOCc1 settled at $44.85.
“So far the quantities of production are more than demand. There’s a big drop in demand and so when the present production is more than the supply there is no choice but to reduce production,” Shahristani said.
“When Opec looks into output cuts, this is not to embarrass the market.”
Shahristani added that non-Opec producers needed an oil price of $70 to be able to continue production.
