Reuters cited Mr Rostam Qasemi oil minister of Iran as saying that there will be no need for the Organization of Petroleum Exporting Countries to hold extraordinary meeting if the current trend of rising oil prices continues.

Mr Qasemi said that "In 161st meeting of OPEC it was agreed if oil prices fall below USD 100 per barrel it means that prices are in crisis so we have urged secretary general of OPEC to make preparations for holding an emergency meeting.

He said that if OPEC members failed to comply with the agreed production ceiling of 30 million barrels per day this would disrupt balance in the oil market. If OPEC members don't observe agreed production ceiling it will be followed by disorder in oil markets.

In its last meeting in mid June, OPEC agreed to adhere to the collective limit, implying 1.6 million barrels per day cut from the actual supply for 12 members of 31.5 million. To do that, Saudi Arabia would need to cut back sharply.

International crude benchmarks Brent and US oil futures posted their biggest quarterly declines on Friday since the Q4 of 2008 due to weak demand, ample supply and economic worries. But prices rebounded later on Friday on a deal by European leaders to shore up euro zone banks. Brent crude oil futures raised more than USD 6 per barrel to near USD 98 while U.S. crude jumped by more than USD 7 to settle just below USD 85 per barrel.

Source - Reuters

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