OPEC Early Meeting Seen More Likely by Analysts on Prices


The Organization of Petroleum Exporting Countries, responsible for 40 percent of the world’s oil production, is facing pressure to have an extraordinary meeting as prices keep falling, according to analysts from Energy Aspects Ltd., RBC Capital Markets and Petromatrix GmbH.

OPEC will probably have the meeting in the first quarter, Amrita Sen, chief oil market analyst at London-based Energy Aspects, said at a Platts conference in Dubai today. The pressure to meet will come from financially-strapped members such as Iran, Iraq and Venezuela, she said. RBC Capital Markets and Petromatrix have also pointed to the possibility of a special meeting. OPEC’s next scheduled summit is June 5.

Crude has tumbled into a bear market as the highest U.S. production in three decades exacerbates a global glut. Saudi Arabia, which led OPEC’s decision to maintain rather than cut output at a Nov. 27 meeting, last week offered supplies to its Asian customers at the deepest discount in at least 14 years.

“Don’t expect a cut” if OPEC meets again before June, Sen said in an interview at the conference.

Brent for January settlement rose 0.1 percent to $66.26 a barrel by 9:30 a.m. on the London-based ICE Futures Europe exchange, after falling 8.8 percent the past five days. Crude prices earlier today dropped to $65.29, the lowest since September 2009.

The last time OPEC met early was in December 2010 in Quito, Ecuador, to discuss compliance with production targets.

Source from : Bloomberg