The Organization of Petroleum Exporting Countries, responsible for 40 percent of the world’s oil production, may have to call an extraordinary meeting if prices keep falling, according to Energy Aspects Ltd.
OPEC will probably have the meeting in the first quarter if prices continue to drop, Amrita Sen, chief oil market analyst at London-based Energy Aspects, said. The pressure to meet will come from financially-strapped members such as Iran, Iraq and Venezuela, she said. RBC Capital Markets and Petromatrix have also pointed to the possibility of a special meeting. OPEC’s next scheduled summit is June 5.
Crude has tumbled into a bear market as the highest U.S. production in three decades exacerbates a global glut. Saudi Arabia, which led OPEC’s decision to maintain rather than cut output at a Nov. 27 meeting, last week offered supplies to its Asian customers at the deepest discount in at least 14 years.