OPEC sees delicate energy market

VIENNA, June 26 (UPI) -- Adjustments can be made to overall crude oil production if necessary to calm markets as the global oil sector enters "delicate" territory, OPEC says.

The Organization of Petroleum Exporting Countries said in its latest bulletin that oil prices were at a level that encouraged future investments in the energy sector, but they were unrealistic based on market fundamentals.

Oil prices plummeted below $40 per barrel in late 2008 as the world economy collapsed into recession, only to nearly double to around $70 per barrel in recent trading.

OPEC noted higher oil prices were needed to maintain an investment environment but blamed the price volatility on market speculation, the Platts news service reports.

In its latest report, OPEC warned that speculation in the energy market coupled with a fragile economy could either lead to another collapse in prices or push it to unprecedented levels as was the case in July 2008 when prices passed $147.

"As a result of all this, the oil market is now in a delicate and precarious state, and a comparatively minor impulse could tip it one way or the other," the oil cartel said.

Officials said they were moving cautiously in terms of production plans but noted they were ready to react to stabilize the market.