First Published: 2008-08-18

 
OPEC may cut oil output
 

CGES says oil cartel may over-react to prevent oil prices from falling further.

 

Middle East Online

Price of crude risks falling under 100 dollars a barrel

LONDON - The Organization of Petroleum Exporting Countries may decide to cut the cartel's oil output quota as the price of crude risks falling under 100 dollars a barrel, energy consultancy CGES said Monday.

"The worsening economic outlook suggests that oil prices have further to fall, but OPEC, whose members are due to meet in early September, may act to prevent them from falling too far," the Centre for Global Energy Studies said in its latest monthly report.

"There is a danger, though, that the Organization will over-react, cut its production too sharply and send oil prices back up," added the London-based consultancy.

World oil prices rose on Monday as traders fretted about the potential impact of Tropical Storm Fay on energy facilities in the Gulf of Mexico.

New York's main contract, light sweet crude for September delivery, added 35 cents to 114.12 dollars a barrel after bouncing above 115 in electronic deals.

London's Brent North Sea crude for October advanced by 43 cents to 112.98 dollars.

Oil futures had fallen sharply last week on the prospect of reduced demand for energy around the globe owing to slower economic growth.

"The CGES believes that OPEC member-countries, facing increased government spending and rising inflation, will not be happy to see prices fall far below 100 dollars per barrel," added Monday's report.

Oil prices have sunk since hitting record highs above 147 dollars one month ago. However, crude futures are more than 10 percent higher than at the start of the year when they surged past 100 dollars for the first time in history.

 

Iraq operation to liberate Anbar faces barrage of criticism

Yemen shelling kills two Saudi border guards

Nusra Front chief pledges no attacks on West

EU calls for resumption of Palestinian-Israeli peace talks

Arrest of several FIFA leaders as part of twin corruption inquiry

Coalition raids target headquarters of rebel troops in Yemen capital

Fast pace of executions in Saudi Arabia 'very disturbing'

Tunisia begins hearings into ex-regime's rights abuses

‘Islamic State’ executes 20 men in ruins of Syria ancient city

Saudi Arabia announces sanctions against two Hezbollah leaders

Libya to fight aggression with 'strength'

Iran says nuclear talks could go beyond deadline

Hamas accused of committing war crimes against civilians

German court rejects Yemenis' case over US drone killings

Kuwait emir urges Muslim states to fight extremism

NY Times journalist has Turkish citizenship revoked

Military site inspections necessary to Iran deal

Iraqi forces on outskirts of Ramadi

Syrian refugees ignored at Turkey poll campaign

Director 'shocked' at Morocco’s prostitution film ban

Libya PM survives assassination attempt

US criticises Shiite name of Iraqi military operation

Israel warplanes strike Gaza after rocket attack

Pro-government fighters retake Yemen city from Shiite rebels

Libya militias trap civilians in Benghazi

EU border agency plans to expand migrant rescue operation

Syria state TV blames ‘foreign enemies’ for signal jamming

Palestinians and jihadists clash in Yarmouk

Iraq refugees forced back into conflict zones

Kuwait restores Islamist lawmaker's citizenship

Washington Post reporter goes on trial behind closed doors in Iran

Iraq launches operation to drive ‘Islamic State’ from Anbar

New airport in restive eastern Turkey

Iran ‘thwarts’ US cyber attack on Oil Ministry’

Egypt opens border crossing with Gaza for 48 hours

Litany of problems keep Iraqi army weak and ineffective

Rouhani: most Iranians favour peace

Iran Foreign Minister discusses Yemen conflict in neutral Oman

Palestinians dismiss Netanyahu initiative

Three Moroccans jailed for homosexuality

Oxfam: 16 million Yemenis have no access to clean water

US, Iraq at loggerheads over Ramadi

Soldier kills comrades in Tunisia barracks shooting

Netanyahu names rightist ally as new Foreign Ministry chief

Iraq rejects US criticism of security forces over defeat in Ramadi