OPEC Finally Accepts Low Prices, May Not Cut Production

OPEC officials Thursday finally accepted worsening economic conditions would keep oil prices low for now, toning down a previous call for higher prices and suggesting the organization may not cut production further as long as prices stayed steady. The statements, which show a conciliatory tone toward oil-consuming nations, came as forecasts for the global economy released this week were gloomier than expected.

On Thursday, the world’s main developed and industrializing nations, the G20 released a package of measures to counter the crisis, including boosting International Monetary Fund resources to $1 trillion.

“I think we can live with prices of around $50 for the time being. The world economy is in a very bad condition,” Abdalla el-Badri, secretary general of the Organization of Petroleum Exporting Countries, said Thursday.

El-Badri’s conciliatory tone was in sharp contrast with his statements in Davos on Jan. 30, where he said “we are not happy with $40, even $50 a barrel.”

Rigzone