OPEC may do the rest of the world a favor. Prices of Brent remain above $100, which many members of the cartel believe are adequate to fund their treasuries. If OPEC decides not to lower production, which probably would have caused an increase in prices, that is one more threat to the world economy that becomes less likely to happen.
Reuters reporters write:
At a meeting in Vienna on Wednesday the 12-member Organization of the Petroleum Exporting Countries is widely expected to retain its 30 million barrel a day (bpd) output target for the first six months of 2013.
“The world economy is weak and supply will be running ahead of demand, which could justify a cut of around 500,000 barrels a day, but political factors will prevent OPEC from taking any formal action,” said a senior OPEC delegate from a Gulf producer, referring to Middle East unrest and sanctions on Iran.
Douglas A. McIntyre