Oil remained near an eight-month low, ahead of a meeting of OPEC ministers. The market continues to gamble that Saudi Arabia, the most powerful member of the cartel, will prevail in its plan to keep production high which should keep downward pressure on prices. Many other members of OPEC would like to see production throttled back to move the price of Brent back up to well over $100.
These members believe that the global recovery, however weak, can sustain higher oil prices and that demand will not collapse under the weight of a worldwide recession. The “price hawks” which stand against the Saudis will probably lose the argument because the Middle East nation has large enough facilities to push more crude into the market on its own.
Douglas A. McIntyre