Opec calls for emergency meeting

Move prompted by concerns over falling oil prices spurred by the global financial crisis.

    Oil has almost halved in price from nearly $150 in July since the global financial crisis hit [AFP]

    However, since then the price has fallen by almost 50 per cent.

    Monday brought some cheer to oil producers when prices rose $3 as global markets rallied in the wake of efforts launched by Western governments to rescue banks.

    Britain, Germany, France, Italy and other European governments all announced rescue packages, while Washington is developing plans to buy equity in financial institutions.

    US crude gained $3.05 to $80.75 a barrel by 1:55pm EDT (1755 GMT).

    London Brent crude rose $2.53 to $76.62 barrel.

    Impact of crisis

    Saadallah Fathi, head of Opec's energy studies department, told Al Jazeera: "The conditions in the world economy don't support policy that would cut oil production and bring prices back to high level.

    "The price of oil is secondary to the condition of the world economy due to the banking crisis around world.

    "It is in the interests of Opec for the market to simmer down and for the economy to recover, and demand will recover and probably oil prices with it.

    "Oil prices won't go down much further, maybe to $70 dollars per barrel.

    "But if the current management of the financial crisis is proved to be successful, then we are likely to see a speedier recovery in the oil market, but definitely won't see high oil prices of around $150 per barrel for some time to come."

    SOURCE: Al Jazeera and agencies


    YOU MIGHT ALSO LIKE

    How different voting systems work around the world

    How different voting systems work around the world

    Nearly two billion voters in 52 countries around the world will head to the polls this year to elect their leaders.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    The peace games: Dreaming big for South Sudan's youth

    The peace games: Dreaming big for South Sudan's youth

    A relatively new independence and fresh waves of conflict inspire a South Sudanese refugee to build antiwar video games.