Nigeria say OPEC Intervention May be Necessary

Nigeria became the latest OPEC member to voice concern about the impact of the global financial crisis after saying that OPEC may need to intervene to balance the oil market if the price of crude continues to slide.

"There may be a need to intervene to balance the market if the price slide seemingly predicted on (lower) demand and over-supply continues," Nigerian Oil Minister Odein Ajumogobia.

Amid mounting expectations that the international financial crisis would have a major impact on demand for energy, oil fell by more than $4 to a 10-month low on Wednesday.

It later pared some of its losses to trade at around $89.

Iraq's oil minister said OPEC may need to consider cutting oil output if the price of crude remains below $90.

Fellow OPEC members Libya and Iran have similarly expressed concerns this week about the impact of the worsening global crisis on the oil market.

The Organization of Petroleum Exporting Countries' next scheduled conference is on December 17 in Algeria.

It decided at a meeting in Vienna on September 9-10 to comply strictly with its formal output target, a move officials said would result in the group trimming supply by about 500,000 barrels per day.

Author: Jo Amey