While it could take five years, OPEC
members are likely to start limiting output to send oil prices back to $80 per
barrel by 2020, the International Energy Agency says.The Wall Street Journal‘s
Benoit Faucon writes that the Organization of the Petroleum Exporting Countries
needs higher prices. Until now, OPEC and its leading members — namely Saudi
Arabia — have tolerated low oil prices to maintain market share. The IEA’s
World Energy Outlook released Tuesday says oil could stay at $50 a barrel if
OPEC can’t restrain production, but the IEA sees production cuts to boost oil
prices as more likely. The report comes just before an important Dec. 4 OPEC
meeting in Vienna. WSJ writes: “The economies of less wealthy members like
Venezuela, Algeria and Iran … advocated a return of a system of fixed oil
prices or to individual allocations of oil production–practices OPEC had
abandoned years ago as inefficient. But Gulf countries refused the proposals.”
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