OPEC seeks to quiet doubts on supply cuts as oil rally falters

When Organisation of Petroleum Exporting Countries (OPEC) and Russia meet this weekend to gauge progress on their oil-supply deal, they will be trying to dispel the shadow of previous unfulfilled promises. Oil prices rose 20 per cent in the month after OPEC agreed to cut output, reaching $54.06 a barrel in New York on December 28. Since then, they have slipped almost 5 per cent as traders, with one eye on rising US shale production, await proof that OPEC and other producers will live up to their deal. They recall how Russia broke its pledge during cutbacks in 2008, while some members of the producers group failed to fully implement the agreement. The solution: The dealmakers have created a panel to verify the cuts, a five-nation group with both OPEC and non-OPEC members that will meet January 22 in Vienna. While some see this as an impressive indication of intent in the midst of a two-year price rout, others worry the group is only now trying to establish how compliance will be assessed. (Grant Smith/Bloomberg)

More from Business News

News

  • H.H. Sheikh Mohammed honours Shabab Al Ahli team

    His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has honoured members of the Shabab Al Ahli football team for clinching four titles this season at a special ceremony in Zabeel Palace.

  • Khalifa Award for Education honours 18th cycle winners

    His Highness Sheikh Hazza bin Zayed Al Nahyan, Ruler’s Representative in Al Ain Region, was named Distinguished Educational Personality in recognition of his extensive contributions to developing the education system locally, regionally and internationally, at an award ceremony held in Abu Dhabi.

  • UAE ship carrying desalination plants arrives in Cyprus

    A UAE ship carrying water desalination plants arrived at Limassol Port in Cyprus on Thursday, to provide clean drinking water and support sustainable global water security.