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"This is really affecting the world demand, not much, but there are some negative signs we see that maybe demand will be slower. Of course we have to stay vigilant, we have to watch the market from now until the next OPEC meeting and I hope by that time the situation will be clearer," adds Al-Badri.
However, the Secretary General also says he is confident that both the EU and the US have the capabilities to solve their respective economic troubles.
OPEC enthusiastic over Libya's return to oil production
OPEC has welcomed the impending return of Libya as an oil producing member after civil war brought production to a halt.
"The situation is stabilising and the NOC and its subsidiaries and its partners are putting everything together and trying to start production." Secretary General Al-Badri states.
"The OPEC secretariat and the OPEC member countries are very happy to see Libya is coming back to production and [will]] fill the position as a normal member of OPEC," he adds.
Libyan crude accounted for 1.5% of the world's supplies before it was taken off the market as a consequence of the uprising in the country. The light, sweet crude oil Libya produces is highly valued by refiners in Europe.
Estimates given on the time it will take for Libya to return to full production levels range from six months to three years. "They hope they will start as soon as possible," says Al-Badri.
Another country going through a stabilisation period is Iraq, where production has steadily been increasing over the past few years. However, Al-Badri indicates that this production has not yet reached a point where OPEC feels it is necessary to place production quotas on the country.
"It's very difficult to put a date, but I've said in the past and I'm saying it now, as we see from the progress they are making in the past two or three years maybe towards the end of 2012 they will reach a level where OPEC will discuss this," Al-Badri says.
OPEC Secretary General plays down division between member countries
Al-Badri has also played down fears of division between members of the organisation, claiming all member countries will 'come together' should they need to at the next OPEC meeting, in December.
Saudi Arabia has recently been involved in a disagreement with Iran, Venezuela and Algeria, over an OPEC proposal to raise output by as much as 1.5million barrels per day. The latter member countries were in favour of maintaining production rates, thus keeping prices above $100 a barrel.
However, Al-Badri is unconcerned by the split. "It's not a political disagreement. It is an economic different point of view. It was concerning a report that the secretariat presented to the conference in June, some countries agreed with the report, some countries did not," he told AMEinfo.com.
"This is something [which is] not a new phenomenon. This has been with us for so many years in the past," he adds.
Al-Badri concludes that at a 'time of crisis' the OPEC members are able to act together in the interests of the group. "We have very qualified ministers and they will be able to put their act together in December. If we need to do something in December," he affirms.
Peter Ward, Reporter
