Making Sense of OPEC Oil Market Politics
Saudi Arabia has always provided the adult supervision among the 12 OPEC members. The November 27th meeting in Vienna was no different as OPEC refused to cut production targets from the present 30 million barrels a day.
By GARY L. HUNT
But the reality that global oil prices have fallen more than 30% is hitting OPEC members in their wallets making for more tension going into this meeting.
Saudi Arabia and its Gulf allies Kuwait, UAE, Qatar stood their ground saying they wanted to let the market find its own balance and that meant lower prices for a while. For the Saudi’s and the Gulf states this is an inconvenience but for many oil producing states lower sustained oil prices are a crisis. KEEP READING