‘No need to OPEC extraordinary meeting if prices go on rising’

DHAKA: Iranian Oil Minister Rostam Qasemi has said that there will be no need for the Organization of Petroleum Exporting Countries (OPEC) to hold extraordinary meeting if the current trend of rising oil prices continues.

‘In 161st meeting of OPEC it was agreed if oil prices fall below $100 per barrel it means that prices are in crisis, so we have urged secretary general of OPEC...to make preparations for holding an emergency meeting,’ Qasemi told the Shana News Agency, reports Tehran Times.

Qasemi warned that if OPEC members failed to comply with the agreed production ceiling of 30 million barrels per day this would disrupt balance in the oil market.

‘If OPEC members don’t observe agreed production ceiling it will be followed by disorder in oil markets,’ he said.

In its last meeting in mid-June, OPEC agreed to adhere to the collective limit, implying a 1.6 million bpd cut from the actual supply for 12 members of 31.5 million.

To do that, Saudi Arabia would need to cut back sharply.

BDST: 1707 HRS, JUL 9, 2012

Edited by Robab Rosan, Cultural Affairs Editor