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OPEC will cut again if prices fall further

13 November 2008 13:54 (UTC +04:00)

(Reuters) - OPEC may cut oil supplies again, possibly by the end of this month, if prices continue to fall and the world economy weakens further, OPEC President Chakib Khelil told Reuters on Wednesday.
Khelil said OPEC could take action before its scheduled meeting on December 17 in Algeria if prices continued to slide below current levels of just under $58.
"If the prices continue their decline most probably OPEC will have to take a further decision on a cut in supply," Khelil, who is also Algerian Energy and Mines Minister, said in an interview in the Algerian capital.
That could happen as early as November 29 at a scheduled meeting of the Organization of the Arab Petroleum Exporting Countries in Cairo, he said.
This group includes top OPEC producer Saudi Arabia along with core Gulf members Kuwait and the United Arab Emirates. The meeting could be widened to include all 12 members of the Organization of the Petroleum Exporting Countries.
"...It is a possibility which is kept open to have a meeting and a decision in Cairo, before the meeting in Oran (Algeria)," Khelil said.
Oil prices have collapsed from a record above $147 hit in July as the market has focused on the implications of the global economic crisis on fuel consumption.
"The world economy is in a very bad shape. It will probably continue declining. It has affected the demand for oil," Khelil said.
Khelil added: "Despite the measures that have been taken by developed countries like the U.S., Europe and China and also by producers, prices continue in their decline.