"OPEC ministers are watching the market vigilantly. If these prices persist or there is a continued decline on the horizon, then the group would consider meeting," Hossein Kazempur Ardebili, Iran's Governor to OPEC told Dow Jones Newswires.
On Thursday, crude prices were holding ground above $58 a barrel but the market, for the near-term, looks to remain under pressure.
Kazempur didn't give a timeframe as to when OPEC may discuss meeting.
OPEC officials have repeatedly suggested that the group has an unofficial pact to keep the price above $60 a barrel.
Concern over a fall in oil prices and rising inventories, was behind the group's decision in Nigeria, Dec. 14 to cut output by 500,000 b/d from Feb. 1.
That cut closely follows an agreement in October to rein in output by 1.2 million b/d or about 4% of production.
Kazempur, however, said prices may correct themselves in coming days.
"What we are seeing is probably temporary and a reaction to the weaker dollar and an adjustment in open interest trading at the end of the year," he said.
Industry sources also say that geopolitical tensions, particularly in Iran and Iraq will keep prices close to $60 a barrel.
No comments:
Post a Comment