EMEA News
As Crude Prices Plummet, OPEC Members Yet Again Disagree on Need to Hold an Emergency Meeting
For the second time in a month, Nigeria has called for an emergency meeting of the Organization of the Petroleum Exporting Countries (OPEC) – but the United Arab Emirates doesn't believe one is necessary.
In mid-December, Emmanuel Kachikwu, oil minister for Nigeria and outgoing OPEC president, said that while the cartel is still hoping prices will recover by February, "If it doesn't, then obviously we're in for a very urgent meeting."
This week he told reporters during an energy conference in Abu Dhabi that several OPEC members wanted a meeting and that he expects to see one in the first quarter of 2016 "if prices remain at current levels.
"I think a ... majority in terms of [OPEC] membership are beginning to feel that the time has come to ... have a meeting and dialogue again once more without the sort of tension that we had in Vienna on this."
Crude futures Tuesday already slipped under the $30 per barrel mark and analysts such as Standard Chartered now predict prices could drop to $10 per barrel.
Kachikwu said the meeting would take place in February or March, but declined to say exactly which members were pushing for it to happen.
One of those members would not have been the UAE however, with energy minister Suhail bin Mohammed al-Mazroui declaring that the OPEC strategy was working - even though that may take up to 18 months to play out.
In any event, he told delegates in Abu Dhabi that he was "not convinced OPEC alone can change or can solely unilaterally change this strategy just because we have seen a low in the market".
Al-Mazroui acknowledged that the oil market for first half of 2016 would be "tough", but a drop in non-OPEC production would lead to a gradual recovery.
As for the prospect of Iran post-sanctions production creating even more market havoc, Al-Mazroui said, "I think all the members including Iran have the right to increase their production; I don't think we are going to restrict anyone."
Last month Kachikwu told media that Nigeria would ask OPEC to persuade Iran to delay its planned post-sanctions exports, but later said that renewed exports would not exacerbate global oversupply.
