OPEC meet­ing may stop oil price slide: Iran

The Pak Banker - - BUSINESS -

DUBAI: Iran's Oil Min­is­ter, Bi­jan Zan­ganeh, said that hold­ing an emer­gency OPEC meet­ing may be "ef­fec­tive" in sta­bi­liz­ing the oil price, Iran's oil min­istry news agency Shana re­ported. Al­ge­ria said ear­lier this month that the Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries could hold an emer­gency meet­ing to dis­cuss the drop in oil prices but other OPEC del­e­gates said no meet­ing was planned. "Iran en­dorses an emer­gency OPEC meet­ing and would not dis­agree with it," Zan­ganeh told re­porters in Tehran, ac­cord­ing to Shana.

U.S. oil prices CLc1 fell be­low $40 a bar­rel on Fri­day for the first time since the 2009 fi­nan­cial cri­sis, pres­sured by signs of over­sup­ply in the United States and weak Chi­nese man­u­fac­tur­ing data. [O/R] OPEC is not due to meet un­til Dec. 4. While OPEC rules say a sim­ple ma­jor­ity of the 12 OPEC mem­bers is needed to call an emer­gency meet­ing be­fore then, some OPEC del­e­gates say a meet­ing is un­likely un­less Saudi Ara­bia is in fa­vor. Saudi Ara­bia, the world's top oil ex­porter, and other Gulf states pushed OPEC's strat­egy shift last year to de­fend mar­ket share rather than cut out­put to sup­port prices. Rel­a­tively wealthy, they are bet­ter able to cope with low oil prices than Iran, Venezuela or African mem­bers. OPEC del­e­gates see lit­tle chance of the ex­port­ing group di­vert­ing from its pol­icy of de­fend­ing mar­ket share, although the latest drop in prices is start­ing to sour the busi­ness mood even in Saudi Ara­bia.

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