Lower crude oil prices sees OPEC member countries sound alarm bells

Some OPEC member countries have begun to sound alarm bells on lower oil prices, suggested the need for an emergency OPEC meeting if oil prices slip to $85 a barrel, or even $90 a barrel, with the OPEC governor of Iran, saying OPEC should consider an emergency meeting if prices continue to fall.

“If there is a downward trend for a longer period, we should think about an emergency meeting.” Iran’s OPEC governor, Mohammad Ali Khatibi said. He declined to offer specific a floor price that should prompt a meeting.

But others are starting to put a firm floor on the price they will deem unacceptable. “Some OPEC member states have already started bilateral consultation on slipping oil prices.” an Iraqi oil official said.

Libya and OPEC Quotas

Meanwhile, OPEC member countries which boosted oil production to compensate for the loss of Libyan supply earlier this year must reduce output as Libya returns to world markets, Khatibi said on Wednesday.

Khatibi, said the continuing global economic crisis would have a negative effect on oil demand.

He predicted that Libya would soon be exporting some 400,000 to 500,000 barrels per day of crude and called on OPEC producers to rein in oil output.

“When oil demand falls and supply remains the same, oversupply can affect prices and it is necessary to manage the supply.” Khatibi said.

Saudi Oil Output nears 10m

Several OPEC members boosted oil output in recent months as oil prices rose and as the uprising in Libya slashed Libyan production from close to 1.6 million barrels per day to virtually nothing.

Saudi Arabia accounted for the biggest increase in oil output and is currently pumping around 9.8 million barrels per day, or 1.8 million barrels per day more than its normal quota.

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