OPEC is not worried about a slide in oil prices toward $100 a barrel, delegates from the producer group said, with current levels seen as acceptable for producers while higher seasonal demand in the coming weeks was expected to support the market.
Brent crude fell to a 14-month low of $101.11 a barrel on Monday as investor concerns over conflict in Ukraine and Iraq eased and Libyan output rose. The drop brought prices below the level some in OPEC need for their budget needs.
But delegates from three members of the Organization of the Petroleum Exporting Countries told Reuters the decline in prices was not an immediate concern.
“There’s no reason to worry,” said a delegate from one of OPEC’s Gulf members.
“We see the dip as a correction. Action will only be taken based on fundamentals and for the time being the price is still fair for producers.”
He did not comment on what price would prompt concern in OPEC.
Source: Arab News, 2014