Oil producers seen by Qatar as studying request for OPEC summit

MOHAMMED ALY SERGIE

DOHA, Qatar (Bloomberg) -- OPEC members and other oil-producing nations will respond to a request by Venezuela that the supplier group meet to try to stabilize crude prices, Qatar’s Energy and Industry Minister Mohammed Al Sada said.

The Organization of Petroleum Exporting Countries has come under pressure from some of its 12 members since deciding last year not to reduce output. Brent crude has dropped more than 50% in the last year amid a surplus in global supply. Venezuela has proposed that OPEC hold a session to arrest the slide and wants to invite non-OPEC producers, such as Russia, while Iran said Mexico would join any OPEC effort to cut supply.

“Different countries are studying this proposal and there will be a response from OPEC, and from outside of OPEC,” Al Sada told reporters Thursday in Doha, without elaborating on the possible timing of such a response. He spoke in the Qatari capital after a meeting of oil ministers from the Gulf Cooperation Council, a grouping of six oil-rich Arab monarchies.

Four GCC states—Saudi Arabia, Kuwait, the United Arab Emirates and Qatar—are members of the Organization of Petroleum Exporting Countries, which supplies about 40% of the world’s oil. The GCC also includes Oman and Bahrain. Most Gulf countries face a greater risk of budget deficits this year due to faltering crude prices. Brent, a global benchmark, was 37 cents higher at $47.95/bbl in London at 12:06 p.m. local time after losing $1.94 in Wednesday trading.