OPEC has called on Saudi Arabia to cut oil production ahead of a two-day conference in Vienna.
The Organisation of Petroleum Exporting Countries want Riyadh to rein in production to help stop the slide in crude oil prices.
As much as 30 dollars a barrel has been wiped off the price of crude since March with recent events in the Arab World contributing to the price decline:
Johannes Benigni, managing director, JBC energy:
“The Arab Spring means that those countries are increasingly under pressure from their own people. At the same time it makes it also very difficult for investors to go into those countries, because they cannot be sure that stability of the region will be there tomorrow.”
Saudi Arabia has hiked up production to 10 million barrels a day, its highest in decades, lifting OPEC supplies to 31.6 million barrels a day well above the official 30 million barrels a day target.
The fall in price from 128 dollars in March to 97.5 in June is hurting OPEC members many of which require oil to trade at 100 dollars a barrel to balance national budgets.