Oil prices fell towards $87 on Thursday after the Nigerian Minister of Energy raised the possibility that the Organization of the Petroleum Exporting Countries (OPEC) would consider the production levels of its members at the next informal meeting.
The price of oil in the U.S. market dropped by 16 cents to $87.24. The day before, it briefly reached $89 – the highest level ever recorded. In the London market, a barrel of crude oil decreased by 18 cents to $82.95. The Nigerian Minister of Energy stated to Reuters on Wednesday that he does not rule out the possibility that OPEC member country ministers could turn their informal discussions at the upcoming summit of member state leaders in Riyadh next month into a meeting to consider production levels. However, on Thursday, an Iranian official insisted that there is no need for OPEC to further increase production after they agreed to raise market supply by 500,000 barrels per day starting November 1.
"Geopolitics is the underlying reason for the very high oil prices," said the official from the second-largest oil producer in OPEC. "Calming the international situation would help prices," he added. The price of oil has risen by 45 percent since the beginning of the year. Its growth this month has accelerated on the wings of a combination of relatively low oil stocks in consumer countries, an unprecedented weak dollar exchange rate, and the appearance that Turkey will send its troops to northern Iraq to confront Kurdish rebels. OPEC reported in a separate statement on Thursday that the price of crude oil produced by its members reached $81.09 on Wednesday. For comparison, the day before, a barrel of oil from the 12 member countries of the cartel was priced at $80.82. (H)
