Opec's 2019 dilemma
The cartel faces unprecedented challenges, amid sceptism that output cuts will avert a global supply glut
Bearish voices are loudest these days. Several big houses have downgraded their 2019 price forecasts: Goldman Sachs has gone from $70/bl to $62.50/bl, citing a surge in production, particularly from US shale. Opec may be less influential than it used to be, but still accounts for more than 40pc of global oil supplies against 53pc in the 1970s. Clearly, it has more clout when acting as Opec+, the wider cartel that includes Russia and Kazakhstan—which struck a supply cuts accord in Vienna in December. Despite Opec's heft, with mega-producer Saudi Arabia at the helm, undercurrents in the global energy marketplace are viewed as unsettling. Garbis Iradian, chief economist for the Mena region at W
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
