Opec 'could meet again before March'

26 January 2009

Opec officials could implement more supply cuts if oil prices do not recover to $75 (£55) a barrel in March, it has emerged.

According to Reuters, the group's president told Angolan weekly newspaper O Pais this week that members could meet before the next scheduled gathering in March if values suffer any significant drops.

The cartel has already cut supply by more than 4.2 million barrels a day since September, and this began to take effect last week as prices increased.

US crude climbed $2.80 to $46.47 on Friday, while London Brent settled at $48.37 - an increase of $2.98 on the previous day.

Despite this, global demand for oil continues to falter as the economic crisis takes its toll on consumers.

This prompted Opec president Jose Botlho de Vasconcelos to suggest that the group could meet again if crude oil prices drop below $40, with a reference price of $75 a barrel being targeted.

"We could continue to carry out more cuts," he added.

This comes after crude oil prices climbed by six per cent in just one day last Wednesday, which could prompt home heating oil customers to purchase their fuel now to avoid any potential price hikes in the future.

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