Europe's Brent North Sea crude for February dived to $30.43, a point last seen on April 6, 2004. Nigerian petroleum resources minister Emmanuel Ibe Kachikwu declared that he expects an extraordinary meeting of the oil cartel in "early March" to discuss nose-diving crude prices. "We did say that if it (the price) hits the 35 (dollar per barrel), we will begin to look (at)... an extraordinary meeting," said Kachikwu, whose term as Opec president finished in December.
The prices have hit levels that necessitate a meeting, he told an energy forum in Abu Dhabi, but added that he not yet confirmed with fellow Opec ministers if they would be willing to attend. "The prospect of a meeting is definitely capping losses for the day and driving prices back towards $32, however I cannot see it stopping the slide in the longer term," said analyst James Hughes at trading firm GKFX.
"The call for the meeting is not necessarily a surprise as we have lost almost 20 percent since the start of the year and are looking to test $20 a barrel." In midday deals on Tuesday, Brent prices rebounded by 25 cents to $31.82, while WTI clawed back ground to stand at $31.30, down 11 cents from Monday's close. Saudi-led Gulf exporters within the Organisation of Petroleum Exporting Countries (Opec) have so far refused to cut production to curb sliding prices, seeking to protect their market share despite a heavy blow to their revenues.