Related Articles
Leaders
Forward article link
Share PDF with colleagues

Time for action from Opec

Saudi Arabia’s oil minister says Opec will take “any possible action” to stabilise the market. The group should cut, now

The plan to recover market share, force rival producers out of business and wait for prices to bounce back has failed and is creating the conditions for a damaging price spike later this decade. Another boom, forced by the supply gaps that will emerge from the colossal withdrawal of upstream spending, might sound tempting for producers struggling with sub-$50-a-barrel Brent. But it would be a disaster for the industry, giving the decisive push for alternative energy sources and signalling oil’s eventual obsolescence. To avoid this, Opec and any other producer it can cajole into action—Russia, for a start—should act now. This means not just a freeze in production at high levels; and not ju

Also in this section
Opec: The rollover
14 December 2017
The cuts were extended—but with a built-in escape hatch and implicit threat to other producers
Opec's Venezuelan supply problem
8 December 2017
It's hard to see how the Opec-non-Opec agreement would survive a steep decline in Venezuelan oil output in 2018
Disrupting the energy landscape, block by block
6 December 2017
Will blockchain overcome the hurdles in its way to transform the industry?