Related Articles
Forward article link
Share PDF with colleagues

Opec must decide between market share and oil price

The legacy of Opec’s high oil-price strategy is now plain: rising supply and weakening demand growth. The group must decide whether to rescue its market share or the oil price

Some time on 27 November, probably in the late afternoon, Abdalla El-Badri will sit down behind a microphone in a windowless basement room in Vienna and tell the world how Opec plans to deal with an oil price that, by Petroleum Economist’s press time, had lost a quarter of its value since early June. If the downward trend lasts, the group’s basket of crude could be trading well beneath $80 a barrel by the time the secretary general speaks. Will his words matter? Opec claims to hold 81% of the world’s conventional crude-oil reserves and produces a third of its oil. So there are good reasons why journalists gather twice a year in the Austrian capital to stalk oil ministers from the cartel’s 12

Also in this section
The price is right
5 April 2018
With the help of thirsty consumers and collapsing Venezuelan output, the market seems at last to have found its range
Opec and IEA bristle at Trump's trade posturing
16 March 2018
The IEA and Opec say Trump’s trade plans are a threat to global growth
Five key takeaways from the big three oil market reports
15 March 2018
Demand and supply data still diverge, Venezuela’s increasingly critical to balances, and some macro alarm bells are starting to ring