Let OPEC cartel implode, they’ve been keeping oil prices over artificially inflated for decades.
Oil is a commodity like everything else, and should not be allowed to be influenced by a monopoly/cartel. Let it rise and fall according to the free market.
Saudi Arabia risks destroying Opec and feeding the Isil monster
‘Saudi Arabia is acting directly against the interests of half the cartel and is running Opec over a cliff,’ says RBC
The rumblings of revolt against Saudi Arabia and the Opec Gulf states are growing louder as half a trillion dollars goes up in smoke, and each month that goes by fails to bring about the long-awaited killer blow against the US shale industry.
“Saudi Arabia is acting directly against the interests of half the cartel and is running Opec over a cliff”Helima Croft, RBC Capital Markets
Algeria’s former energy minister, Nordine Aït-Laoussine, says the time has come to consider suspending his country’s Opec membership if the cartel is unwilling to defend oil prices and merely serves as the tool of a Saudi regime pursuing its own self-interest. “Why remain in an organisation that no longer serves any purpose?” he asked.
Saudi Arabia can, of course, do whatever it wants at the Opec summit in Vienna on December 4. As the cartel hegemon, it can continue to flood the global the market with crude oil and hold prices below $50.
It can ignore desperate pleas from Venezuela, Ecuador and Algeria, among others, for concerted cuts in output in order to soak the world glut of 2m barrels a day, and lift prices to around $75. But to do so is to violate the Opec charter safeguarding the welfare of all member states.
“Saudi Arabia is acting directly against the interests of half the cartel and is running Opec over a cliff. There could be a total blow-out in Vienna,” said Helima Croft, a former oil analyst at the US Central Intelligence Agency and now at RBC Capital Markets.
