LONDON - LIBYA'S energy chief called on Tuesday on the world's oil producers to cut output to protect their incomes should crude prices continue to trade at current levels.
'If the price level continues as it is we are seriously thinking of cutting down our production and calling other member countries in Opec, and non-Opec producing countries, to cut their production to safeguard their incomes,' Mr Shukri Ghanem told AFP by telephone.
'We are very much worried about this drop of the price,' added Mr Ghanem, who is Libya's representative in the Organisation of Petroleum Exporting Countries (Opec).
'We will think that all producing countries should take a unified view and should try to do something to stop the deterioration of the prices,' said Mr Ghanem, who is also chairman of the Libyan National Oil Corporation (NOC).
Crude futures rebounded by more than two dollars a barrel on Tuesday, holding close to US$90 (S$131.67) per barrel, on speculation that Opec could cut output to prevent the market falling further.
Traders added that the market was also boosted by growing hopes that the world's central banks could cut their interest rates in a bid to boost troubled financial markets.
The cost of crude oil has plummeted by about 40 per cent since striking record heights above US$147 in Jul, as the market has been dragged down by fears of weakening economic growth and slowing demand.
Lower oil prices translate into falling revenues for members of the 13-nation Opec cartel.
Mr Ghanem told AFP that he would support an emergency meeting of Opec oil ministers to discuss the issue.
'I will support the idea of an emergency meeting, but in the meanwhile we want to see action,' he said.
In Sept, Opec decided to cut its production of 520,000 barrels of oil per day, to sustain oil prices above US$100 dollars a barrel.
Mr Ghanem's comments came one day after Opec vice president Galo Chiriboga, who is Ecuador's oil minister, said that volatile world financial markets could affect oil prices and force the cartel to take action.
'This is going to have an impact on oil prices; this will have an impact on US oil consumption,' Mr Chiriboga said at a press conference on Monday.
Opec, he added, would assess 'how the European markets react... If there is a further fall in consumption, it seems to me that Opec will have to consider that fact and take steps to adjust production levels.'
Since Opec cut output last month, prices have slid amid the ongoing financial turmoil. -- AFP
