The price for OPEC’s basket of crude stood just above that threshold on Tuesday, at $ 80.04 a barrel. US crude, which trades a few dollars higher than OPEC oil, slid to a 10-month low yesterday on concern that the international financial crisis would have a major impact on demand for energy.
“The price is still reasonable,” the source told Reuters. “If it stays where it is then OPEC will stick to the output levels decided at the last meeting. I think if it falls below $ 80, OPEC will do more.”
Several members of the Organization of the Petroleum Exporting Countries have voiced concern about demand and the falling price. Nigeria was the latest on Wednesday, with its minister saying OPEC may need to intervene to balance markets.
“Those are the non-Gulf countries, this is their usual concern,” said the OPEC source. Core Gulf Arab OPEC members typically base their budgets on more conservative oil price expectations.
