ADVERTISEMENT

OPEC ministers tackle falling oil prices

Food

OPEC ministers headed for Vienna on Monday to wrestle with the issue of falling oil prices, with analysts expecting them to agree to trim output to help keep crude above $100 a barrel.

The question facing the oil producer group, which is to hold a policy meeting Tuesday, is when, not if, to cut its oil production target as crude prices slide in the face of weakening global economic growth, analysts say. Most observers expect the 13-nation cartel to agree to reduce its output informally before waiting until later, possibly at a scheduled gathering in December, to alter its official output target.

The informal cut will be achieved by members, mainly powerhouse Saudi Arabia, agreeing to cut their excess production above their OPEC quota, which would remove oil from the market but not amount to a formal change in policy. “Anyone that is overdoing their quota should respect it,” Libya’s OPEC representative, National Oil Corporation (NOC) chairman Shukri Ghanem, told AFP by telephone on Sunday. “The market is more than oversupplied it seems.”

Under fierce pressure from the United States, Saudi Arabia agreed in May and June to increase production to help calm the runaway crude market which reached a pinnacle on July 11, when crude struck $147 a barrel in New York. Saudi Arabia, the world’s biggest crude producer, is estimated to be producing about 700,000 barrels per day above its quota. The stakes are entirely different to the last time OPEC members met in March, when crude prices had broken through $100 a barrel and were on a steep upwards trajectory.

This time, oil prices are on the way down and approaching $100 a barrel - a level many members, above all the traditional price h

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.