The Organisation of Petroleum Exporting Countries, or Opec, will likely keep its production quota unchanged when it next meets in October, Libya's top oil official said Sunday. "So far we can't take any action. Prices have gone to $87 a barrel, then down to $67, and then to the $70s so the market is fluctuating and we have to wait to see whether its a real trend or not," Shokri Ganem, chairman or Libya's National Oil Company, or NOC, told media by telephone. He added that volatility in the oil market is being driven by factors including the value of the US dollar, geopolitics and even the price of other commodities.
US crude for July delivery fell $3.10, or 4.15 per cent to settle at $71.51 a barrel Friday on disappointing US employment data and fresh fears about Europe's bank problems spreading. ICE Brent futures sagged $3.32 to settle at $72.09. Opec is next scheduled to meet in Vienna, Austria, on October 14. The meeting will include new oil ministers Diezani Allison-Madueke, Yousuf Yousfi and Wilson Pastor representing Nigeria, Algeria and Ecuador respectively. Ganem said he expects Opec compliance to improve as oil prices weaken.
