Related Articles
Forward article link
Share PDF with colleagues

Opec and oil market dynamics

Opec's goal of defending high oil prices may suit some members in the short run, but its long-term impacts could be damaging

Since its historic agreement in November 2016, Opec's efforts to manage the oil market have shown signs of success: key benchmarks are in backwardation, speculative positioning has been at record length and a floor price of $60 a barrel has been defended. Strong Opec compliance—both voluntarily (Saudi Arabia) and involuntarily (Venezuela)—has been supported by stronger-than-expected demand growth. By Opec's own measure of success, its target of reducing five-year commercial OECD inventories has been largely met (currently between 30-50m barrels above five-year average). As Opec meets in June to review its progress, it has already signalled its dissatisfaction with using the five-year averag



{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Kuwait and Oman hope for peace dividend
26 January 2021
More cordial Saudi-Qatar relations raise hopes for economic and energy investment progress in other GCC allies. But serious challenges remain
Pavilion prepares for carbon neutrality as normal
26 January 2021
The Singaporean firm is laying the foundations for when carbon-neutral LNG will be a requirement
Caracas turns to capitalism for survival
26 January 2021
Venezuelan government makes moves to liberalise oil sector as economic sanctions push production to 50-year low
Sign Up For Our Newsletter
Project Data
PE Store
Social Links
Social Feeds
Featured Video