Low oil prices may cause serious damage to stability on oil market: OPEC
Azerbaijan, Baku, September 8 / Trend , A.Badalova /
Low oil prices may cause serious damage to the oil industry, the OPEC report on the oil market 2009 said.
"The significant drop in oil prices since the financial crisis around the world inflicts long-term serious damage to the stability of the oil market. It is important that they do not harm the investment in the oil sector, where in recent years a number of projects delay or are terminated," the report says.
OPEC calls on to increase transparency in the oil market, as well as improve the methods of its regulation.
Today it is very important to find and retain the best real price of oil, the report says.
According to the cartel, the price of oil should be at that level, "which would facilitate the development of the oil industry."
"High oil prices observed in mid 2008 were not justified by the balance of supply and demand," the report said.
As a result of trades on September 7, on the New York Mercantile Exchange the price of futures for WTI crude oil with delivery in October remained at $68.02 per barrel. On the InterContinental Exchange in London, the future contract for Brent Crude oil declined in price by $0.29 to $66.53 per barrel. Prior to the OPEC meeting, today insignificant price growth is observed.
According to Saudi Oil Minister Ali al-Nuaimi, the current price of oil satisfies all. He said that presently the market is well supplied with oil, despite the fact that there is a slight excess of supply over demand.
Experts agree that at the upcoming meeting in Vienna, OPEC will not change the quotas for oil production. Currently production quotas for the 11 OPEC countries were 24.84 million barrels per day. According to International Energy Agency, OPEC oil production in July amounted to 28.64 million barrels per day.
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