A good year for OPEC, but troubles may lie ahead

Thanks to strong demand, a global economy that continues to show strength, limited increases in supplies from producers like Russia and Kazakhstan, and repeated interruptions in production from the Gulf of Mexico, members of the Organization of the Petroleum Exporting Countries have gone through 2005 with what has been, to them, a perfect alignment of stars: high prices along with high production and high demand.

..But after having avoided divisive issues for the last year, OPEC is likely to face a much different picture next year. Analysts said the group might have to consider production cuts, as non-OPEC producers increase their own supplies, if it wants to stop prices from falling too low. One issue that may be discussed privately during Monday’s closed session is the largest unresolved question for OPEC today: What is the minimum price that the group will choose to defend?

My West Texas