The Organization of Petroleum Exporting Countries (OPEC) stands ready to make further cuts in oil supply if prices remain subdued, the cartel's secretary general said Thursday.
"If we still have some downward problems, then OPEC will not hesitate to take some quantity out of the market," Abdalla Salem El-Badri told a panel of top oil chiefs at the World Economic Forum, which kicked off Wednesday in the Swiss ski resort of Davos.
El-Badri said a price of $40 per barrel, or even $50 per barrel, was too low for oil producing countries to keep investing in the industry. The price of oil, which now stands at a little more than $40, fell sharply in recent months due to weak demand concerns amid economic woes. It had peaked close to $150 per barrel last July.
El-Badri expressed hope that global oil demand would pick up "by the end of this year or beginning of next year."
OPEC announced a cut in daily production by 2 million barrels in December, following a similar reduction in October, but the moves have so far failed to push up oil prices.
Copyright 2009 XINHUA NEWS AGENCY
"If we still have some downward problems, then OPEC will not hesitate to take some quantity out of the market," Abdalla Salem El-Badri told a panel of top oil chiefs at the World Economic Forum, which kicked off Wednesday in the Swiss ski resort of Davos.
El-Badri said a price of $40 per barrel, or even $50 per barrel, was too low for oil producing countries to keep investing in the industry. The price of oil, which now stands at a little more than $40, fell sharply in recent months due to weak demand concerns amid economic woes. It had peaked close to $150 per barrel last July.
El-Badri expressed hope that global oil demand would pick up "by the end of this year or beginning of next year."
OPEC announced a cut in daily production by 2 million barrels in December, following a similar reduction in October, but the moves have so far failed to push up oil prices.
Copyright 2009 XINHUA NEWS AGENCY
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