Opec must confront an unpalatable reality | Financial Times:
A little over a month ago the majority of Opec members must have thought they could see some light at the end of the tunnel.
Oil prices were back to near $75 a barrel, having risen 45 per cent since the beginning of the year. US sanctions on some of their oil-producing cohorts, including Iran and Venezuela, promised to keep prices propped up. And Russia, the group’s main rival-turned-ally, was struggling with contamination of a big pipeline to Europe, providing Opec countries with an additional market, in the short term at least, for their oil.
But fast forward to today and it turns out the light was not one of salvation for the oil producers’ cartel, but the headlamps of two juggernauts: the US shale industry and a demand-sapping slowdown in the global economy.
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