Opec's president said today that the group is considering an emergency meeting to discuss the possibility of cutting output after oil prices recently dipped to seven-month lows.
"We are toying with the idea of an emergency meeting," said Edmund Daukoru, a Nigerian oil minister who is also serving as president of the Opec.
The comments came after oil prices rebounded yesterday from a seven-month low and jumped more than $1 a barrel today. But prices for crude-oil futures in New York are still roughly 23 per cent below their July peak of $78.40.
A Financial Timesreport today said Opec has informally agreed to cut output 4 per cent in coming weeks to defend the $50 to $55 per barrel price range.
Saudi Arabia's ambassador to the United States had said
yesterday that he did not expect Opec to hold an emergency meeting to discuss prices ahead of its scheduled December 14th meeting, despite the recent decline in prices.
Light, sweet crude for November delivery on the New York Mercantile Exchange rose $1.19 to $60.60 a barrel in electronic trading by afternoon in Europe. The price went as high as $60.97 during the day.
Nymex crude had settled on Tuesday at $58.68 a barrel, the lowest close since February
16th.