No surprise here.
OPEC said today that it was leaving its production levels unchanged for the moment, signaling that it was more concerned with slowing economic growth than with high oil prices.
The oil cartel rejected calls from oil consumers, including the United States, to increase output to drive down prices. Saudi Arabia had initially said the group would consider increasing production by 500,000 barrels a day but backed down in the face of opposition from other OPEC members after oil prices fell last week.
With oil prices still around $90 a barrel, today’s decision suggests that producers have significantly increased their minimal target price for oil. Analysts now believe that OPEC’s new floor to be around $70 to $80 a barrel.
Given the volatility in oil markets, the Organization of the Petroleum Exporting Countries said it would meet again in February to review its decision and fine-tune its supply levels.
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