Related Articles
Forward article link
Share PDF with colleagues

Opec ready to stay the course after slow progress

Prices need to fall again if the group's strategy to regain market share is to work

After the doors are shut and the Opec ministers take their seats around the horseshoe table in Vienna's Helferstorfer Strasse on 5 June, their decision should come swiftly: do nothing and keep pumping. Low prices have brought pain for Opec's producers. The group earned $730billion in net oil export revenues in 2014, down 11% on the year before, says the Energy Information Administration (EIA), and revenue could fall to $380bn this year. The slump has left some members, like Venezuela, perilously close to bankruptcy. It's been a high price to pay for its strategy to recoup market share. On the surface, though, the plan to let the market drift lower and force higher-cost rival producers offl

Also in this section
Opec and IEA diverge on world’s capacity cushion
13 July 2018
As trade tensions and disruptions ripple through the market, Opec and the IEA disagree on the risks to supply
Oil markets on the rise
10 July 2018
The oil-price recovery has helped to improve the outlook for oil and gas capital markets
Strategy v market dynamics
6 July 2018
Members must consider a host of complex issues as they wrestle with the problem of managing oil supply