Calls for low oil prices are short-sighted, says OPEC

March 7th, 2009 - 1:08 am ICT by IANS  

Vienna, March 6 (DPA) The Organisation of the Petroleum Exporting Countries (OPEC) Friday rejected calls to keep oil prices at present low levels, arguing this would lead to a supply crunch.
Maintaining the current price would help stimulate the economic recovery of oil-importing countries, the executive director of the International Energy Agency (IEA), Nobuo Tanaka, was quoted as saying by the Financial Times Thursday.

But OPEC secretary general Abdalla Salem El-Badri complained that the prices of $40 per barrel and more oil industry investments wanted by the IEA were not viable.

The oil cartel is set to meet in Vienna March 15 to discuss possible further production cuts.

OPEC’s basket price has been around $40 per barrel despite production cuts of 4.2 million barrels per day since last September.

According to the IEA, oil-importing economies would receive a stimulus of $1 trillion if oil prices stayed around $40 per barrel this year.

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