Kuwait Oil Official: OPEC May Not Need to Act on $60 Crude

DUBAI (Zawya Dow Jones), May 28, 2009

Oil prices dropping to just below $60 a barrel Friday may not warrant action by the Organization of Petroleum Exporting Countries when the group next meets in September, a senior Kuwaiti oil official said Sunday.

"Action is not just related to prices but supply and demand and other factors," said Nawal Al Fuzaia, assistant undersecretary of economic affairs at Kuwait's oil ministry.

Nymex front-month crude oil futures Friday slid $0.52 to settle at $59.89 a barrel, the lowest price since May 19, and down about 60% on the intraday record high of $147.27 a barrel on July 11, 2008.

According to Fuzaia, recent price volatility may be due to crude stocks declining and gasoline and distillates stocks improving. She added OPEC members will also have to study other factors including the global economy.

"Most of the forces say demand is weak but this winter may be colder so there may be demand in heating oil, and crude stocks are declining, all these will be assessed before deciding to cut or not cut," Fuzaia added.

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