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.

 

Israel escalates merciless Gaza onslaught

Qatar emir in unannounced visit to Saudi

Is Tunisia returning to old regime censorship?

Kuwait revokes pro-opposition TV, newspaper licences

Islamic State expands into tourism in Syria, Iraq

Yemen president calls for unity

Etihad helps Jet Airways return to profit

HRW: Iraq air strikes wreaking awful toll on civilians

Twin suicide bombing shakes Libya's Benghazi

Car bomb rips through Baghdad checkpoint

Turkey detains dozens of senior police officers for 'spying'

Saudi Arabia ousts head of Syria opposition government

Maliki meets Sunni tribal leaders in new bid to gain support

Israeli envoy: Our soldiers deserve a Nobel Peace Prize

Rights group denounces Kuwait's revocation of citizenship

Kerry again places onus on Hamas to accept ceasefire

Britain finds evidence of effort to Islamise state-run schools

Fiercest fighting in months hits Eastern Damascus

Iraq slams Jordan for hosting 'unacceptable' meeting of Sunni critics

Erdogan sacrifices Gaza mediation in favour of anti-Israel diatribes

Israel hits Al-Jazeera Gaza office

Syria oil industry suffers huge losses because of war

UN calls for help to vaccinate Syria toddlers against polio

Erdogan has stopped talking to Obama

Israel confirms kidnapped soldier is dead

South Sudan rebels pledge to pull troops out fails

Rouhani: More negotiations only solution for nuclear deal

Israel identify 12 soldiers killed over the weekend

UAE pledges $41 million aid for Gaza reconstruction

Security Council condemns persecution of Iraqi Christians

Islamists lose in Libya parliament elections

Deadly clashes erupt in Benghazi

27 Israeli soldiers killed in Gaza assault

One of world’s oldest monasteries falls into hands of jihadists in Iraq

Syria rebels expel jihadists from four areas in Damascus region

Kuwait revokes citizenship of owner of pro-opposition Al-Youm TV

Diplomacy intensifies to end weeks of deadly violence in Gaza

Turkey imposes curfew on Hakkari town after clashes

UAE slams Doha-based Al-Jazeera over fabricated Gaza news

Syria to Russia: Thanks for supporting our victory!

Behind the scene: Kerry criticises Israel offensive on Gaza

IAEA says Iran complying with nuclear deal

France slams and bans ‘anti-Semitic’ Gaza rally

UN chief denounces persecution of Iraqi Christians

Kerry in Cairo to stop Mideast conflict