OPEC looks set to delay any further cuts in oil production until December as the cartel meets in Egypt to assess the impact of its last supply reduction, amid declining demand.
The Organisation of the Petroleum Exporting Countries slashed production by 1.5 million barrels a day last month, the biggest cut since the world economy last wobbled in 2001.
Meanwhile, Saudi Arabia identified 75 dollars a barrel as the ideal price for oil. It is the first time the world’s leading crude exporter has mentioned a specific price target.
The announcement will come as a huge relief to major oil consumers who feared OPEC might push for prices closer to the 100 dollar mark, a price that would add further pain to a world in recession.
Oil prices have plummeted 63 percent since reaching a record 147 dollars a barrel in July.
The situation is made more complex as figures show that recession in Japan, the world’s second biggest oil importer, deepened in October as companies cut output.