When OPEC meets next week in Vienna, Iran and others are expected to press Saudi Arabia to scale back its record output--or else face the risk of a new oil-price collapse.
Much has changed since the group last met in December and managed to put aside its differences to agree to collectively produce 30 million barrels a day. For one thing, oil prices in London have fallen below $100 a barrel as the world economic outlook has worsened. For another, world powers have raised the pressure on Iran's nuclear program while urging Saudi Arabia to pump more oil to make up for any Iranian shortfall.
The combination of these factors has sown discord in OPEC, with several members fretting over the current output level. Yet despite the rhetoric, few analysts expect OPEC to make dramatic shifts next week.
No comments:
Post a Comment