Oil Prices Following the Next OPEC Meeting

Oil Prices Following the Next OPEC Meeting

Al-Ittihad, UAE, November 1

By the time OPEC countries hold their next meeting at the beginning of December, a lot of water will have flowed under the bridge of the global economic crisis. The new US Congress will already be elected following the midterm elections scheduled for early November, and the winter that Europe so profoundly fears will already sweep the gas-deprived continent. Christmas and New Year’s Eve will be a little sadder this year, and Santa Claus will not be able to distribute his gifts to children as he usually does – due to either a lack of money or a lack of heating. In addition to this global economic and political downturn, and its impact on standards of living in various countries, OPEC members will find themselves facing several other thorny issues that will necessitate sensitivity and equanimity in the decisions they make. OPEC members have relied on two main strategies these past few years: The first is complete unanimity in their decision and actions, and the second is flexibility in how they operate and respond to market conditions. Following the group’s decision, taken in its last meeting, to reduce oil production by 2 million barrels a day, global oil prices shot up. However, prices have largely returned to their pre-reduction levels since then. Therefore, the world is awaiting the next meeting with much interest, and countries and companies are already basing their decisions on how they expect OPEC to respond to global markets. The expectation is that OPEC countries will work to stabilize the oil market and ensure a fair and consistent price per gallon in months to come. If oil prices surge, it is expected that the group will respond by increasing production to restrain this rise. Conversely, if prices continue to decline, then further reductions in supply will be very likely. Therefore, all options are still on the table for the December meeting. No one expects the group to make decisions that contradict its collective interests. But this doesn’t mean that there is no room for cooperation and negotiation between OPEC and consuming states. This is true today more than ever before, given the vitriolic media campaigns conducted against OPEC following the rise in oil prices. The sharp fluctuations in energy prices aren’t beneficial to the global economy, and both OPEC and non-OPEC states have an interest in finding a healthy middle ground. –Dr. Mohammed Al-Asoomi (translated by Asaf Zilberfarb)

Give the Gift of Truth This Jewish New Year

The Media Line has been leading for more than twenty years in pioneering the American independent news agency in the Middle East, arguably the first in the region. We have always stayed true to our mission: to provide you with contextual sourced and trustworthy news. In an age of fake news masquerading as journalism, The Media Line plays a crucial role in providing fact-based news that deserves your support.

We're proud of the dozens of young students we've trained in our Press and Policy Student Program who will form the vanguard of the next generation of journalists to the benefit of countless millions of news readers.

Non-profit news needs public support. please help us with your generous contributions.
The Media Line
We thank our loyal readers and wish you all the happiest of holidays.

Invest in the
Trusted Mideast
News source.
We are on the
front lines.

Personalize Your News
Upgrade your experience by choosing the categories that matter most to you.
Click on the icon to add the category to your Personalize news
Browse Categories and Topics
Wake up to the Trusted Mideast News source Mideast Daily News Email
By subscribing, you agree to The Media Line terms of use and privacy policy.
Wake up to the Trusted Mideast News source Mideast Daily News Email
By subscribing, you agree to The Media Line terms of use and privacy policy.