Opec unlikely to hold emergency meeting on oil drop
LONDON, October 14, 2014
The Organization of the Petroleum Exporting Countries (Opec) is unlikely to call an emergency meeting as proposed by Venezuela, two Opec sources said, a sign the exporter group is in no rush to discuss a collective response to the sharp drop in oil prices.
Venezuela last week became the first member of to call for an emergency meeting to arrest the slide in oil prices, which have slid to below $88 a barrel, the lowest since 2010.
But the suggestion has met with a cool response from others in Opec, which appears split on what action if any should be taken to halt the slide. The next scheduled Opec meeting is on November 27 at Opec's Vienna headquarters.
"The ordinary meeting is not very far away," said an Opec delegate, who declined to be identified by name. "It would be surprising to meet before."
While the drop in prices has caused concern in some Opec countries, the chance of collective action looks unlikely. Kuwait said Opec was unlikely to cut production, while Saudi Arabia told Opec that it raised output in September.
Indeed, Saudi Arabia has been telling oil market participants that it is comfortable with lower prices, a policy shift that may be aimed at retaining market share in years to come, Reuters reported.
Another Opec source downplayed the chance of an emergency meeting taking place.
"No preparations are being made. It seems to have almost died away," the source said.
The first delegate added that winter demand should support the oil market in coming months and appreciation of the US dollar had partly offset the impact of lower oil prices for some producers.
"At this time of the year, it is normal to have some price weakness," the delegate said. -- Reuters
