Nigeria says OPEC may review crude balance post Japan

OPEC could meet to assess the crude demand and supply situation after the crisis in Japan, Nigeria's foreign minister said on Wednesday, though the group's Gulf members have said there was no need to meet before June.

Brent crude rose towards USD 110 at 0717 GMT on Wednesday, off a three week low a day before when prices slumped 4.5%, the biggest drop in more than a year, as Japan's nuclear crisis slashed confidence across markets. "I expect they will (meet) because of the exigencies of the situation. (But) I'm not aware," Nigerian Foreign Minister Odein Ajumogobia told reporters when asked if OPEC was going to meet to assess the situation after the crisis in Japan. "It is a good time to assess the situation," he said, adding he was not aware if Nigeria had made a request to OPEC to convene a meeting. So far there has been no indication from OPEC's Gulf members of any group meeting before June, when the group is next scheduled to convene. Kuwait's oil minister, Sheikh Ahmed al-Abdullah al-Sabah, said on Tuesday that there was no need for an extraordinary meeting as oil prices were dropping. Oil prices fell after a massive earthquake hit Japan on Friday, after unrest in the Middle East and disruptions of supply in OPEC member Libya caused prices to rise to almost USD 120 on February 24. Saudi Arabia, the world's largest oil exporter promised last month that it would meet any supply gap caused by violent unrest in OPEC producer Libya, and had boosted output to 9 million barrels per day (bpd). Asked if Nigeria could consider increasing output to offset reduced production from Libya, Ajumogobia said: "We cannot decide on this unilaterally. We are a member of OPEC." He was speaking to reporters after meeting Indian Oil Minister S Jaipal Reddy. Libya is estimated to have lost two-thirds of its oil output, while fighting between government and rebel forces and international sanctions have halted all oil exports from Africa's third-largest producer. It normally pumps around 1.6 million bpd, 85% of which is exported to Europe. Ajumogobia said Nigeria's current output was 2.5 million barrels per day (bpd). "Our OPEC oil output quota is 1.8 milion bpd and the rest is condensate," he said. "Nigeria is trying to increase output to 4 million bpd as soon as possible." The minister said an Indian oil firms' consortium has shown interest in Shell's exploration blocks in Nigeria, but he did not give details.