Opec leaders shrug off crisis talks

DOHA - Several key Opec ministers yesterday dismissed the need for an emergency meeting to address oil prices that have fallen by over 10 per cent in just days, but voiced concern about the impact of the Greek debt crisis on crude markets.

Qatar's oil minister, Abdullah bin Hamad al-Attiyah, said the market was moving in reaction to the "psychological" impact of the Greek financial crisis and concerns that it could expand elsewhere in Europe.

Oil producers "have to wait calmly so that we know what will happen", al-Attiyah said outside the Arab Energy Forum in the Qatari capital.

The benchmark light sweet crude oil futures contract for June delivery had settled at about US$75 ($104) a barrel on Friday, recording a US$2 a barrel drop that came in tandem with a slide in world equity markets amid fallout from concerns over Greece's crisis.

The fall brought crude to about US$12 a barrel lower than its 18-month high last Tuesday.

The 12-nation Organisation of the Petroleum Exporting Countries has not changed its output quotas since late 2008 when it capped a record series of cuts to help boost prices that had plummeted on the back of the global financial meltdown.

But even as the production cuts enacted then by the producer group - which supplies about 35 per cent of the world's oil - boosted prices, its compliance with its quotas has gradually eroded.

Analysts estimate Opec compliance with its targets is about 50 per cent - a level which has done little to sap the oversupply of oil in the market.

Saudi Oil Minister Ali al-Naimi said he was "not worried at all".

"Opec is always in movement, and it is not silent," al-Naimi said.

Algerian Oil Minister Chakib Khelil echoed al-Attiyah in pointing to the Greek financial crisis as the catalyst behind oil's declines. But Khelil said he expected the market would stabilise, with oil ranging between US$80 to US$90 a barrel this year.

The calls by Qatar and Algeria for maintaining the status quo came a day after Kuwait's oil minister indicated the group could potentially meet before its October gathering if prices drop below US$65 a barrel.

- AP