OPEC May Link Oil Price Target to Production Costs

The Organization of Petroleum Exporting Countries may link a new price target for oil to the rising cost of producing crude in its member states, said Mohammed Barkindo, OPEC’s acting secretary general.

“We are looking at the current price regime within the context of our rising costs,” Barkindo told reporters at a conference in Riyadh, Saudi Arabia, today. “The issue of rising costs of funding production, whether offshore, onshore, upstream and downstream, have sky-rocketed in the past several years.”

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