Opec had no choice

Giuseppe Artizzu

www.huffingtonpost.it // january 2015

The long-awaited Opec Summit in Vienna on thursday ended with nothing concrete: cartel production in 2015 will remain the current one, despite the collapse of more than 30% of barrel price since this summer. Who has interpreted the decision as a deliberate choice by the Saudis to make a price war on American producers is wrong. Opec had no choice, the financial perspectives are grave for weaker members of the cartel, such as Venezuela and Nigeria, in a context of low oil prices. What determines the excess supply on the international oil market are not the big producers who challenge the hegemony of the Kingdom, but hundreds of small American oil companies, which drill as if there was no tomorrow. For these, the future consequences of petrol supply are not taken into consideration.