A near-doubling of oil prices since the end of last year should give Opec the chance to take a bow next week for its disciplined output cuts, but there is likely to be discontent in the wings of the producer group’s meeting.
With oil rising this week to $62 a barrel from $33 in December, most analysts expect Opec to stop short of a new cut in output after agreeing to remove 4.2 million barrels per day – 5 per cent of world demand – to counter the recession. The group will maintain its supply target of 24.845 million barrels a day when it meets on May 28 in Vienna, many analysts believe.
That is just as well, because Opec “malcontents” Venezuela, Angola and Iran are questioning individual supply targets or output figures. Analysts say the issue could complicate any change in overall supply and undermine efforts to present a unified front to the wider world.
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