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Low oil prices unfit for market stability: OPEC

(Xinhua)
Updated: 2009-03-08 10:28

VIENNA -- The current excessively low oil prices cannot guarantee its long-term stability in the crude market, Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Abdalla Salem El-Badri said on Friday.

A Kuwaiti employee looks at at the al-Rawdatain oil field. [Agencies]

The moderation of prices since last summer's extreme, certainly offers some short-term relief to consumers. However, if the current low price environment persists, this short-term relief may not translate into long-term gain, El-Badri said in a statement released by the OPEC secretariat in Vienna.

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As to the International Energy Agency's (IEA) remarks that the world would get a US$1 trillion economic stimulus if oil prices stay at around 40 dollars per barrel through 2009, El-Badri said OPEC wanted to see the global economy back on its feet, but the short-, medium-, and long-term timeframes are all interlinked.

If low oil prices persist, it is not economically viable for OPEC member states to invest in the industry. Low oil prices inevitably mean less investment, he said.

El-Badri also said OPEC remained committed to ensuring a stable, sound and sustainable oil industry.

OPEC will hold a ministerial conference on March 15.