May 6, 2016

PITY THE POOR MALTHUSIANS:

Shift in Saudi oil thinking deepens OPEC split (Dmitry Zhdannikov and Rania El Gamal, 5/05/16, Reuters)

As OPEC officials gathered this week to formulate a long-term strategy, few in the room expected the discussions would end without a clash. But even the most jaded delegates got more than they had bargained with.

"OPEC is dead," declared one frustrated official, according to two sources who were present or briefed about the Vienna meeting. {...]

[E]vents at Monday's meeting of OPEC governors suggest that if Saudi Arabia gets its way, then one of the group's central strategies - of managing global oil prices by regulating supply - will indeed go to the grave.

In a major shift in thinking, Riyadh now believes that targetting prices has become pointless as the weak global market reflects structural changes rather than any temporary trend, according to sources familiar with its views.

Posted by at May 6, 2016 3:48 PM

  

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