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
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
