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.

 

An extraordinary meeting: Gulf ministers agree to end tension with Qatar

US releases $450 million Iranian frozen assets

‘Retaliation is life’ group vows to attack Egypt security forces

Gunmen storm South Sudan UN base killing 20

Malaysia activists: Obama you are not welcome here!

Kidnappers of Tunisian diplomat demand jailed Libyans release

Landmine blasts Tunisia soldier amid growing jihadist threat

Marzouki sets an 'example' by cutting salary by two-thirds

Rouhani: Iran does not intend to be aggressive but can defend itself

Turkey to Russia: We demand a gas price revision

For Massacre-scarred Algeria village, peace is worth more than wealth

An act of heroism: Iraq policeman sacrifices himself to shield army recruits

UK ‘determined to catch’ killer of Libya embassy policewoman

Experts: Washington demanded removal of Saudi spy chief

Future of Algeria on wheelchair

Palestinians rally for solidarity with Israel-held prisoners

Turkey may clinch bid to dismantle Italy’s wrecked ship

Israeli, Palestinian negotiators to hold meeting with US envoy

UN ‘gravely concerned’ about South Sudan oil state fighting

South Sudan war: Child soldiers consumed by desire for retribution

Algerians casting their vote for president

Syria world’s most perilous country fro journalists

Egypt jails ex-presidential hopeful for fraud

Egypt leftist leader urges all revolutionary groups to unite

Jordan ‘destroyed’ combat vehicles entering from Syria

South Sudan army loses key oil town of Bentiu

Lebanon parliament soon to elect new president

Zarif to discuss Caspion Sea states in Russia

MERS spreading in Saudi Arabia

Algeria finally opens its piggybank to lure back exiled youth

Suicide bombs rock Ramadi government compound

Three Palestinians killed in Gaza blast

Peace talks delayed after Palestine blamed for fatal shooting

Palestinians clash with Israeli police in Al-Aqsa

Undercover New York police unit that spied on Muslims disbanded

Washington will not issue visa for Iran UN envoy

British paedophile gets 20-year sentence in Morocco

Syria army fights its way into besieged Homs

Invisible Bouteflika urges Algerians to vote

Saudi Arabia replaces powerful intelligence chief

Benflis mobilizes ‘army’ to monitor Algeria election

Syria army advances on rebel-held neighbourhoods in Homs

Egypt court bans any Brotherhood candidacies in upcoming elections

Turkey rights groups sound alarm at plan to build gay-only prisons

Kuwait coup plot video ‘neither genuine nor reliable’