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Will Opec have a happy new year?

Will Opec have a happy new year?

According to the cartel, oil prices have increased considerably in the past year to reach “perfect” levels. But will 2010 be more profitable?


December 23, 2009 8:08 by

Although Opec countries might keep production quotas unchanged, non-Opec countries are increasing production, which will balance out any additional demand from the market.

“We must stress once again that it is not only Opec that should be taking measures to balance the market,” José Maria Botelho de Vasconcelos, Minister of Petroleum of Angola and the President of the Opec Conference said in his speech on Tuesday.

“All Opec and non-Opec producers should be involved in this process. They all benefit; therefore, they should all contribute. It is very hard on our member countries when they make sacrifices to cut back on output for the common good, only to find that other producers are stepping in to fill the gap. History has taught us that such independent actions can eventually damage the market,” he said.

“It is far better to take a cooperative approach towards meeting the many challenges facing the oil market,” he added.

Whether co-operation between the cartel and other oil producing nations will take place remains to be seen.

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