Opec braces for tough time
The Opec oil exporting cartel, suffering from plummeting oil prices, faces further pain next year as a worldwide recession dampens demand for crude even more, analysts believe.
"Opec is dealing with tough circumstances, the toughest in 10 if not 30 years," Raad AlKadiri of PFC Energy told AFP on the sidelines of Opec's informal gathering in the Egyptian capital.
Although Opec ministers decided on Saturday to keep output unchanged, they also vowed to cut production next month in the face of flagging demand and despite the global financial crisis.
“We took note of the serious deterioration in the world economy and its serious consequence on the oil price," OPEC President Chakib Khelil said, adding that "negative growth in (oil) demand is possible" next year.
“We realise that in the first quarter of next year we are probably going to have a decline in demand, and in the second quarter we are going to have a big decline," Khelil said.