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OPEC warns of consequences of oil price drop

By DPA,

Vienna : The decline in prices of crude oil during the worldwide recession will have medium- and long-term consequences for the international oil industry, the president of the Organisation of Petroleum Exporting Countries (OPEC) said Sunday.

Speaking at the start of the 152nd conference of OPEC oil ministers in Vienna, Jose Maria Botelho de Vasconcelos warned that the organisation already had to stop long-term investment due to low oil prices.

Botelho, who is Angola’s oil minister, also spoke of job losses worldwide in the industry.

The oil ministers are to discuss a possible reduction of oil production, with the world’s largest oil producer Saudi Arabia having spoken against any further curbs.

OPEC analysts, however, expect a possible agreement on a reduction of around 500,000 barrels per day.