Opec loses influence in the oil market

The third summit of the Organization of Petroleum Exporting Countries (Opec) is to be held in Riyadh, Saudi Arabia tomorrow.

The summit comes at a critical time; against the backdrop of increasing oil prices and heightened tension in the Gulf region. Oil is likely to break the $100 per barrel mark, over the next few weeks- a price that would further increase the revenues of the producing countries but will also put extra burden on the consuming nation economies. The Opec summit will discuss the price issue and its impact on the world economy and will discover instantly that it has little power to moderate the prices in the international market. The reliable flow of oil from the Gulf region has always been the key factor for a stable oil market and a vital interest for the United States and to the whole world. The increase in oil prices is not linked to a shortage of supplies, but is the direct effect of the stand –off between Iran and the US.
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