The Organization of Petroleum Exporting Countries, OPEC, may have no choice but to summon members to an emergency extraordinary meeting if oil prices continue to fall, immediate past President of the 12-member nation organization, Ibe Kachikwu, said on Monday.
Although the next OPEC meeting is not until June 2, 2016 Kachikwu, who is Nigeria’s Minster of State for Petroleum Resources, said an emergency meeting is likely in the months of March or April to figure out how the cartel can stem the collapse in oil prices.
Brent crude oil price hit a seven year low at the weekend as it sold a little less than $38 per barrel in the international market.
Speaking at a press briefing in Abuja to herald the 6th Africa Petroleum Congress (CAPE VI) slated for March 2016 in Abuja, the Minister said: “I expect to see an OPEC meeting in the months of March or April. It depends on what the behavioural track record of oil is looking like. Right now it is trending southward. Anticipation is that it should begin to trend upward about February next year and if it doesn’t, obviously we are in for a very urgent meeting”.
According to OPEC rules, a simple majority of the member nations is all that is required to call an emergency meeting.
Recall that the organization at its last meeting, which was chaired by Kachikwu on December 4, could not come to terms on output targets to reduce oil supply that has cut prices by more than 60 percent since 2014.