Oil experts have dismissed as inaccurate reports that OPEC, the world’s main oil cartel, has lost control of the global oil market.
The Organization of the Petroleum Exporting Countries (OPEC) remains a key player in the global crude market and continues to manage the current price crisis very wisely, analysts told Al Eqtisadiah.
They also said that the cartel cannot be blamed for the current crisis, adding that non-OPEC members have contributed to the market’s current supply glut.
In the first trading session after OPEC’s decision not cut supply, crude prices lost more than five per cent of their value and tumbled to their lowest in nearly seven years on Monday.
For the first time in decades, OPEC oil ministers have not made any reference to the group’s output ceiling, signalling disagreement among members about the accommodation of Iranian production once Western sanctions are lifted.
However, experts downplayed fears that crude would sink to even lower levels, saying that current price levels will be maintained.
But it is expected that the current glut in the market will most likely swell further and will certainly delay price recovery in the near future.
They warned that current prices place heavy pressures on oil companies to continue lay-offs and halt investments.