"OPEC will act if prices reach $US28, as usual. The price band mechanism is designed to keep the market price between $US22 to $US28 bbl for its basket of seven crude oils," he said. "If the upper limit is breached for 20 days, OPEC would increase output, and if the lower limit is breached for 10 days, production would be cut back."
Echoing Mr Khelil comments, Iran's Oil Minister Bijan Namdar Zangeneh said OPEC will provide additional oil if the market needs it, while Nigeria's presidential oil advisor and OPEC President Rilwanu Lukman said the group "would do something" if oil rose to $US30 bbl.
The United Arab Emirates Oil Minister Obaid bin Saif Al-Nasseri said he was happy with the current price of oil, as it's within the range set by the group's price band mechanism. Mr Al-Nasseri added he expects prices to remain in the range through the summer. The next OPEC meeting is scheduled for 18 September.
Traders put the recent oil price weakness down to an industry report showing that OPEC compliance had deteriorated by an extra 100,000 barrels in June to 1.52 million barrels per day.
This result would have been even worse had it not been for lower Iraqi and Venezuelan output.
