DOHA (Reuters) – OPEC Secretary General Abdullah al-Badri said on Sunday the global oil market was oversupplied, calling for greater compliance among members of the group.
Badri said one of the main reasons for the drop in oil prices was speculative play.
“OPEC already took action in December 2008 to reduce 4.2 million barrels (a day),” he told reporters.
“We just have to abide by that … I am calling for more compliance.”
Badri said OPEC had not set any target price when asked if $65 was a trigger for the group to act.
“We don’t have a target price. I think it (price drop) is because of the Greek problem,” he said.
Badri said OPEC will take a wait-and-see approach before taking action to stem the sharp drop in prices last week.
“I’m not going to move because the price goes up and down, volatility is the name of the game,” Badri told reporters on the sidelines of the Arab Energy conference in Doha.
U.S. crude oil futures settled at $75.11 a barrel on Friday, posting their largest weekly loss in almost a year-and-a-half, as worries grew that the euro zone’s debt crisis might derail the global economic recovery.
Crude also hit its lowest level since Feb. 16 on Friday at $74.51, after going over $87 a barrel early in the week.
Badri said Asia, in particular China and India, were now driving demand.
“Demand in the OECD countries is declining. There is no doubt that the demand is shifting now to Asia, to India and to China,” he said.