January 29, 2009

OPEC calls production cuts possible

OPEC Secretary General Abdalla Salem El-Badri told world leaders in Switzerland that oil priced at $50 a barrel would not fund new oil field development.

I hope the price will pick up "¦ a $50 price will not permit us to invest, he said at the World Economic Forum in Davos, Switzerland, Thursday, The Times of London reported.

Members of the Organization of Petroleum Exporting Countries are not happy with $40, even $50 a barrel, he said.

He said OPEC members will not hesitate to take some quantity out of the market, if prices continue to fall.

Oil was priced at $41.20 on the New York Mercantile Exchange Thursday morning.