No need for urgent OPEC meet on lower oil price

September 11, 2014
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 No need for urgent OPEC meet on lower oil price/AFP
No need for urgent OPEC meet on lower oil price/AFP

, Koweït, September 11- OPEC member Kuwait said Thursday there was no need to call an emergency meeting for the producers’ cartel to discuss sliding oil prices after crude hit a 17 month low.

“We do not believe there is a need to call an emergency OPEC meeting” to discuss the drop in prices, Oil Minister Ali al Omair told reporters at the end of a regular meeting of the oil ministers of the Gulf Cooperation Council (GCC).

“So far, we are confident that prices have not dropped to the extent that makes us call for an emergency meeting,” Omair said.

Oil prices fell in Asia Thursday after coming under pressure due to weak global demand and a supply glut, even as US President Barack Obama vowed to destroy jihadist militants in Syria and oil rich Iraq.

US benchmark West Texas Intermediate for October delivery eased 14 cents to $91.53 while Brent crude for October fell four cents to $98.00 in afternoon trade.

On Wednesday, Brent crude hit a 17 month low below $99 a barrel.

Omair said the fall in oil prices was not on the agenda of the ministers’ meeting.

The minister, whose country pumps around 3.0 million barrels a day, said he did not believe the drop in oil prices was substantial “because the fall was expected as a result of high production especially from the United States.”

“We still believe that oil prices are currently stable despite the slight drop. Prices are likely to rebound ahead of the winter season,” Omair said.

Earlier, Saudi Oil Minister Ali al-Nuaimi played down the drop in oil prices, saying this was not the first time crude prices slump.

“Prices of oil always go up and down so I really don’t know why the big fuss about it this time,” Nuaimi told reporters.

The drop in Brent crude price below $99 a barrel came amid fears of increased production and lower-than-expected demand.

OPEC on Wednesday said in a report that demand would grow by 1.05 million barrels per day in 2014 to 91.2 million, trimming 50,000 barrels from the previous outlook.

Demand in 2015 is expected to grow 1.19 million barrels per day, 20,000 barrels a day fewer than before, the cartel said.

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