OPEC should examine market conditions

VIENNA, Nov. 26 (UPI) -- Officials with the International Energy Agency said Wednesday oil-producing states should take a close look at the economy before deciding on production quotas.

IEA Executive Director Nobuo Tanaka called on members of the Organization of Petroleum Exporting Countries cartel to "look at the market closely" before making any decisions on production quotes at a Nov. 29 preliminary meeting, the Platts news agency reported.

The director said oil supplies were at "very good levels," saying OPEC should examine demand forecasts for the winter as well as geopolitical dynamics.

"We want OPEC countries to see the market situation very closely and react (to) it if necessary," he said.

OPEC members called for a preliminary Nov. 29 meeting in Cairo and a Dec. 17 ministerial meeting in Algeria to review quotas as oil prices plummet toward $50 per barrel, down from July highs around $147.

OPEC in October agreed to cut production by 1.5 million barrels per day in an effort to stem declining market prices.

Tanaka said that while prices continue to slide, however, OPEC producers should continue with planned investments to avoid a calamity in the future once the world economy recovers.

"We have learned this lesson already. This kind of volatility is not good for producing or consuming countries," he said. "To avoid that, they (OPEC members) should continue their investments as planned."