VIENNA : What Next for OPEC?
Frustrated emissaries of the Organization of Petroleum Exporting Countries begin meetings today in Vienna to try once more to stop the fall in world oil prices. Despite limiting production at a meeting just two months ago, the OPEC nations have been unable to firm up prices--now about $17 a barrel compared to OPEC’s target price of $21.
A glut of oil is keeping prices low. Among the causes are unexpectedly high exports from producers in the former Soviet Union, production hikes by non-OPEC producers and lower demand than most analysts predicted.
Analysts see two options for the ministers: Stick with the existing ceiling, hoping that increased demand for winter heating oil will drive prices up, or cut output even more.
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