Opec may hold emergency meeting in March

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Opec may hold emergency meeting in March
Dr Matar Al Neyadi, Undersecretary, UAE Ministry of Energy; Dr Emmanuel Ibe Kachikwu, Minister of State for Petroleum Resources, Nigeria; and Adnan Z. Amin, director-general, International Renewable Energy Agency, at 7th Gulf Intelligence UAE Energy Forum in Abu Dhabi on Tuesday.

Abu Dhabi - Nigerian minister says a "couple" of members of the Opec had requested an emergency meeting.

By Haseeb Haider

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Published: Wed 13 Jan 2016, 6:33 PM

An emergency meeting of the Organisation of Petroleum Exporting Countries or Opec, meeting may be convened in February/March to discuss issues relating to lower oil prices and output cuts.
Speaking at 7th Gulf Intelligence UAE Energy Forum organised by the Gulf Intelligence, Dr Emmanuel Ibe Kachikwu, minister of state for petroleum resources of Nigeria who is President of Opec also, said a "couple" of members of the Opec had requested an emergency meeting.
He said that current market conditions support the need to hold such a gathering. US benchmark West Texas Intermediate, or WTI, for February delivery was down around 2.8 per cent, at $30.54 per barrel, in Asian trade on Tuesday, their lowest level since April 2004, and have shed almost three-quarters of their value since mid-2014. European benchmark Brent North Sea crude fell 3.1 per cent, to $30.57.
The minister told reporters that there was a lot of push from various blocs within Opec for the need of a meeting.
He did not name the countries who are seeking an emergency meeting. Any meeting that would take place would be to review Opec's position to see if there was any need to change its strategy, Kachikwu said. The meeting could take place in February or March.Much will depend on the attitude of Opec heavyweight Saudi Arabia, which has resisted calls for a cut in production to help boost prices.
"Saudi Arabia has never held the position that it does not want to talk," Kachikwu said. "In fact, it was very supportive of a meeting before June, at the time when we held the December meeting, if (there was a) consensus call for it."
"We did say that if it (the price) hits the 35 (dollar per barrel), we will begin to look (at)... an extraordinary meeting," the minister said.
The prices have hit levels that necessitate a meeting, he said.
Kachikwu said that member countries differ on the issue of intervention.
"One group feels there is a need to intervene. The other group feels even if we did, we are only 30 to 35 per cent of the producers really," as 65 per cent of supply comes from non-Opec countries, he said.
"Unless you have this 65 per cent (of) producers coming back to the table you really won't make any dramatic difference," he added.
No Opec members, including Saudi Arabia, are happy with the slide in prices since the group's last meeting in December, Kachikwu said.
After the lack of consensus at the December meeting, Opec ministers knew oil prices would fall, Kachikwu said. High-cost shale oil producers are showing resilience to low prices and "are becoming a constant equation in the oil dynamics," he said.
"I certainly hope that it doesn't go below $30 for the sake and survival of everybody" Kachikwu said. "My perception is that we will see it get worse before it gets better." Oil is seen ending the year at $40 to $50 a barrel, he said.
- haseeb@khaleejtimes.com

ReportTalmiz Ahmad, India’s former ambassador to the UAE, at the forum.
ReportTalmiz Ahmad, India’s former ambassador to the UAE, at the forum.
Zahid Muzaffar, chairman of Pakistan’s Oil and Gas Development Company, at the event.
Zahid Muzaffar, chairman of Pakistan’s Oil and Gas Development Company, at the event.

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