OPEC calls informal September meeting

VIENNA - Agence France-Presse

REUTERS photo

The Vienna-based Organization of the Petroleum Exporting Countries (OPEC) said on Aug. 8 it has called an informal meeting of member countries for next month in Algeria to help stabilize the oil market.

OPEC said in a statement that the meeting would take place on the sidelines of the International Energy Forum in Algeria from Sept. 26 to 28.

“OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market,” it said.  
   
OPEC President Mohammed Bin Saleh Al-Sada reiterated the organization’s view that oil demand will pick up in the third and fourth quarters of this year.

OPEC sees recent oil price declines and current market volatility as “only temporary” and due to weak refinery margins, an inventory overhang and the impact of Britain’s decision to leave the EU on the crude oil futures market.

An expected return of economic growth in oil-consuming countries would rekindle demand for oil in the remainder of the year while oil supply would tighten, leading to higher prices.

Al-Sada added that more investment in oil production was needed to meet growing demand and offset declining output from existing wells.

Oil production was expected to decline as a result of an “unprecedented drop in capital expenditure” in the industry since last year.

Oil edged higher to near $42 a barrel in Asia Aug. 8 but analysts said the increase was unlikely to last as the commodity remains under pressure by a supply glut and a strong dollar.

Prices have been fluctuating since entering a bear market last week, falling more than 20 percent and closing below $40 a barrel for the first time since April.