Arab analyst blames Opec for collapse in prices

A prominent Arab energy analyst has blamed Opec for the collapse in crude prices, saying the oil cartel has failed to fully comply with output cuts and kept sending contradicting messages to the already sceptic market.

Nicholas Sarkis, Director General of the Paris-based Arab Petroleum Research Centre (APRC), which acts as an adviser to the Organisation of Arab Petroleum Exporting Countries (Oapec), described Opec’s behaviour in dealing with the faltering crude demand over the past few months as “suicidal.”


In an article published in the APRC’s monthly magazine, Arab Oil and Gas, Sarkis urged the 12-nation Opec to announce a target for its oil price and to abide by output reductions to attain it.

He said crude prices had failed to respond to Opec’s policy of continuous cuts, the latest of which was in Algeria on December 17, when its oil ministers agreed on a massive reduction of 2.2 million barrels per day.

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