Oil Prices: OPEC to Meet in Cairo
By Ejiofor Alike with agency report, 11.14.2008
The 13-member nation of the Organisation of Petroleum Exporting Countries (OPEC) will meet in Cairo, Egypt on 29 November for "consultation" on the oil market, a senior Iranian oil official said yesterday, after oil prices continued their slide.
OPEC members are calling for action to halt oil's slide to around $56 a barrel as they face reduced revenues and a struggle to finance domestic programmes.
Iran had previously said the oil cartel could meet before a gathering scheduled for December 14 in Algeria, with some suggesting the meeting could be on 28 November in the Egyptian capital.
“It is not an extraordinary OPEC meeting; it is a consultation meeting to discuss market developments. It will be in Cairo on 29 November," the Iranian official, who asked not to be identified, was quoted as saying.
“The OPEC headquarters has sent a letter to all OPEC members to inform them about the meeting,” he added.
Meanwhile, Chief Executive Officer of Royal Dutch Shell, Mr. Jeroen van der Veer said yesterday that investing in oil projects could still be attractive with the price of $50 a barrel if taxes and royalties on oil production are not too high.
OPEC countries, including Nigeria had earlier said oil prices of around $80 per barrel were needed to justify investment in new projects.
Veer told reporters in Istanbul Shell was “very much interested” in Iraqi oil contracts, which he projected would be distributed in 2009, and Shell was in talks with a number of companies about a possible consortium.
OPEC president Chakib Khelil had earlier hinted that OPEC may cut output again if oil prices fell further and added that non-Arab oil producers could be invited to the Organisation of Arab Petroleum Exporting Countries (OAPEC) meeting.
OAPEC, which includes Arab states who members of OPEC are also, but not non-Arabs like Iran or Venezuela, was due to meet on 29 November in Cairo.
OPEC members agreed in October to reduce supplies by 1.5 million barrels per day, representing about 5 per cent, with effect from 1 November but that measure has failed to stop oil prices declining.
