Defending market share: An employee fills a motorcycle with fuel at a gas station in Manila, the Philippines. Opec’s historic decision in November 2014 – to pump more oil and defend its market share against surging rival suppliers – was working, they proclaimed as crude traded near US65 per barrel. Six months later, it has hit US45, down from as much as US115 in the middle of last year. — Bloomberg
LONDON: The Organisation of Petroleum Exporting Countries (Opec) is determined to keep pumping oil vigorously despite the resulting financial strain even on the policy’s chief architect, Saudi Arabia, alarming weaker members who fear prices may slump further towards US$20.
Any policy U-turn would be possible only if large producers outside the exporters’ group, notably Russia, were to join coordinated output cuts. While Moscow may consult Opec oil ministers before their six-monthly meeting next week, the chances of it helping to halt the price slide remain slim.
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