Opec to meet for 'consultation' on oil market

Opec members are to meet in Cairo later this month for "consultation" on the oil market, a senior Iranian oil official said today…

Opec members are to meet in Cairo later this month for "consultation" on the oil market, a senior Iranian oil official said today.

Opec countries are calling for action to halt oil's slide to around $56 a barrel as they face reduced revenues and a struggle to finance domestic programmes. Oil prices have tumbled from a record level of more than $147 in July.

Iran had previously said Opec could meet before a gathering scheduled for December in Algeria.

"It is not an extraordinary Opec meeting, it is a consultation meeting to discuss market developments. It will be in Cairo on November 29th," the Iranian official, who asked not to be identified, said.

"The Opec headquarters has sent a letter to all Opec members to inform them about the meeting," he said.

Opec President Chakib Khelil said yesterday Opec may cut output again if oil prices fell further and added non-Arab oil producers could be invited to the Organisation of Arab Petroleum Exporting Countries (OAPEC) meeting.

OAPEC, which includes Arab states who are also members of Opec but not non-Arabs like Iran or Venezuela, was due to meet on November 29th in Cairo.

Opec members agreed in October to reduce supplies by 1.5 million barrels per day, or about 5 per cent, from November 1st but that measure has failed to stop oil prices declining. Iran has said Opec could cut take action if oil prices fall more.

Reuters