... ineffective organisation, increasingly similar
to a consultancy
In view of these trends it would be more sensible for OPEC’s members not to reduce output now. It is also more important for them to preserve their markets than to try to raise prices.
OPEC: a retired oil consultancy specialist
Many players in OPEC will therefore advocate maintaining overall output at the previous level of 30 million barrels per day
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. The countries that do not agree with this, however (Venezuela, Iraq, Libya and some others),...
... sweeteners' which lure corrupt officials. However, we should not see these majors as 'locking-up' resources nor that they are immoral (as it is trendy to bicker online), as in reality they have little choice and China anxiously needs oil as the memory of early 2000s energy famish is still fresh. Basically, China cannot trade with OPEC smoothly as it does not give special treatment via some sort of guaranteed quotas and rivalry is fierce from traditional majors who have cemented their place over the past century. Moreover, Russia opposes equity investment and it is not corrupt ...
... quite heavily on oil for its budget, we typically need around $90-100 per barrel for prices to be deemed fair. As anyone knows, who may have stumbled across a business section of any media outlet, reserve levels and production capacity of Saudi Arabia/OPEC, play a big role in global oil prices. This 'fairness element' is an interesting one, as it is in fact a double-edge sword, if it prices oil too highly by lowering production [which is not instantaneous, as markets must firstly adjust], it also leads to alternatives ...
