Algiers: The Organization of Petroleum Exporting Countries, or Opec, may have to wait until December to take action to reach its preferred oil price range of $70-90 (Rs3,465-4,455) a barrel because the effect of its latest cuts is not yet clear, the group’s president Chakib Khelil, said on Sunday.
He told a press conference that he saw a meeting of Opec ministers in Cairo later in November as more of a brainstorming session that might formulate recommendations for action at Opec’s gathering at Oran, Algeria, on 17 December.
“Our objective is to reach a price of $70-90,” he said.
He said it was too early to say whether cuts agreed at its meeting in October would be enough to revive prices.
“We don’t know if that will be enough because most of the producers have not yet completely applied their reductions. Therefore, we will know that in one month or maybe two months,” he said.
“The only source of information that we have comes from insurance companies who are going to tell us who are applying (the cuts),” he said, apparently referring to shipping specialists who monitor tanker movements.