As expected the 161st Opec conference which was held in Vienna on Thursday, ended without making substantial decisions regarding membercountries’ production collectively or individually.
The conference decided to rollover Opec’s production ceiling of 30 million barrels a day (mbd), which was agreed upon last December but never actually followed as Opec production kept rising to reach 31.87 mbd in May, according to IEA. The decision is perhaps a compromise between those who wanted to raise the ceiling and those who wanted to lower it.
The conference press release noted that the “heightened price volatility witnessed during the early part of the year 2012 was a reflection of geopolitical tensions and increased levels of speculation in the commodities markets, rather than solely a consequence of supply/demand fundamentals” but this does not exonerate Opec’s over-production.
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