ARTICLES MODERN

Faced with plunging oil prices and declining incomes, members of the OPEC cartel on Saturday suggested that they might lower production for the third time this year when they meet in Algeria next month.
But the group’s refusal to seek an immediate cut in output demand even as craters in the United States and the world edges in a broad recession reflects difficulties cartel is facing in trying to stop prices from falling.
Chaotic in a news briefing held in a hotel lobby here, the president of OPEC, Chakib Khelil, said that according to previous production cuts has been satisfactory. But even in the organization tries to present a unified front, it’s incredibly tough faced with the task of trying to stop prices from falling at a time when demand is not growing.
After six years of increasing prices and low voltage in the group, members of the Organization of Petroleum exporting countries are growing distrustful of one another’s pledges to trim production. As a result, OPEC has proved ineffective in slowing the slide in prices, let alone reverse it.
After reaching a historic high in July, oil lost $ 90 a barrel, at approximately 55 U.S. dollars as economic growth slowed sharply in recent months and the financial system caught up.
In their last two meetings in recent months, OPEC members pledged to withdraw two million barrels per day from the market. It is inevitable that OPEC will have to reduce their production more in the coming months, analysts said.

Saudi Arabia’s oil minister, Ali al-Naim, said the group would “do what needs to be done” prices to shore.

Mr. Naim has also said that 75 U.S. dollars a barrel was a fair price, “echoing comments made by King Abdullah of Saudi Arabia in an interview with Al-Seyassah, a Kuwait newspaper that was published the same day. It is the first time in years that Saudi officials have discussed a price.

Oil prices gained 9 percent last week, after rebounding from three years Lows, as markets anticipated that OPEC would cut its production on Saturday. They have changed in thin trading on Friday in New York at $ 54.43 a barrel, but could slip back below $ 50 again next week.

OPEC does not publish production figures from its members, such countries should be based on so-called secondary sources, including estimates of oil consultants and monthly figures published by the International Energy Agency.

Some producers believe that Iran and Venezuela, which have been most vocal in calling for new production cuts prices to shore, are not sufficient for carrying out the task. Others, such as Angola, see little upside to a reduction in their output while they seek to attract new investors. Some, like Saudi Arabia, do not want to lose market share and revenue while others benefit from discounts their production.

Meanwhile, OPEC producers are desperate to stem the slide. Most manufacturers need prices of $ 60 $ 90 a barrel to balance their budgets.