'Opec has confirmed its own death'

07 December 2015 - 02:01 By ©The Daily Telegraph

The Opec cartel is to continue flooding the world with crude oil despite a chronic glut and the desperate plight of its own members. It is demanding that Russia, Kazakhstan and other producers join forces with Opec before there can be output cuts.Brent prices tumbled almost $2 a barrel to $42.90 as traders tried to make sense of a fractious Opec gathering in Vienna, which ended last week with no production target and no guidance on policy.Prices are poised to test lows last seen at the depths of the financial crisis in early 2009. The shares of oil companies plummeted in London, and US shale drillers went into free-fall on Wall Street.Oil tankers are lined up off the coast of Texas - part of a flotilla of crude storage on the high seas across the world, delaying delivery in hope of a price rise."Lots of people said Opec was dead. Opec itself has just confirmed it," said Jamie Webster, head of HIS Energy.Venezuela's oil minister, Eulogio del Pino, pushed for a cut in output of 1.5million barrels a day to clear the market, describing the failure to act as calamitous.Abdallah Salem el-Badri, Opec's chief, conceded that the cartel's strategy has been reduced to an impotent waiting game, hoping that the pain of low prices will lure Russia and other global producers to the table."We are looking for negotiations with non-Opec, and trying to reach a collective effort," he said.El-Badri said there have been "positive" noises from some but none is yet ready to create a sort of super-Opec, able to dictate prices.The cartel's 12 members postponed a decision on their next step until next year, once they know how much oil Iran will sell after sanctions are lifted. ..

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