Opec's narrowing options
An extension to the cuts may not help the group as much as it helps Texas
Opec meets this week in Vienna and for all the back-slapping about record-high compliance with its cuts, things are not going in the group's favour. Opening the taps, as it did in late 2014, brings weak prices and intolerable fiscal pain. Tightening supply, as it has done since January, can stop another price collapse but in reality it just subsidises American shale. For now, Opec is sticking with the second of the two bad options. Texas will be pleased. Surprises are unlikely at the meeting on 25 May. All Opec's signals to the market have been to expect a rollover of the cuts, possibly for another nine months (instead of six) or even a full year. Venezuela, as ever, would like everyone to s
Also in this section
24 December 2025
As activity in the US Gulf has stagnated at a lower level, the government is taking steps to encourage fresh exploration and bolster field development work
23 December 2025
The new government has brought stability and security to the country, with the door now open to international investment
23 December 2025
A third wave of LNG supply is coming, and with it a likely oversupply of the fuel by 2028
22 December 2025
Weakening climate resolve in the developed world and rapidly growing demand in developing countries means peak oil is still a long way away
