* No reason to panic about oil drop -delegates
* Oil price at level seen as favourable by Saudi Arabia
* Gulf members could trim supply informally if needed
LONDON/DUBAI, Aug 19 OPEC is not worried about a
slide in oil prices towards $100 a barrel, delegates from the
producer group said, with current levels seen as acceptable for
producers while higher seasonal demand in the coming weeks was
expected to support the market.
Brent crude fell to a 14-month low of $101.11 a barrel on
Monday as investor concerns over conflict in Ukraine and Iraq
eased and Libyan output rose. The drop brought prices below the
level some in OPEC need for their budget needs.
But delegates from three members of the Organization of the
Petroleum Exporting Countries told Reuters on Tuesday the
decline in prices was not an immediate concern.
"There's no reason to worry," said a delegate from one of
OPEC's Gulf members. "We see the dip as a correction. Action
will only be taken based on fundamentals and for the time being
the price is still fair for producers."
He did not comment on what price would prompt concern in
OPEC. Brent is still above the $100-mark favoured by top
exporter Saudi Arabia, which many others in the 12-member group
Prices need to fall further to be outside an acceptable zone
cited by Saudi Oil Minister Ali al-Naimi in June, when OPEC last
met to review its output policy. Oil at "$100, $110, $95 is a
good price," he said.
An oil official from an African OPEC member took a similar
view of the price drop to the Gulf delegate.
"It's just a seasonal phenomenon," the official said. "The
price will probably go back up in the autumn when demand picks
up. There is no reason for panic. Anyway, the price will not go
OPEC has a nominal target to produce 30 million barrels per
day and in July, pumped around that level, according to a
Reuters survey. The organization is not scheduled to meet to
review its output policy until November.
But Saudi Arabia, Kuwait and the United Arab Emirates could
trim supply informally if needed, such as to make room for a
further recovery in Libya or to support prices, said an OPEC
In the last few years, OPEC has left its target unchanged
and left market management to informal supply tweaks by the
three Gulf producers.
"The Gulf countries could cut back if they see a need," the
source said. "Other than that, I've not heard of any concern."
(Reporting by Rania El Gamal in Dubai, Amena Bakr in Doha and
Alex Lawler in London; Editing by Veronica Brown and David