OPEC members’ big fear: Price drop

For the past three months, a few of the top representatives from the Organization of Petroleum Exporting Countries have argued that their oil-producing cartel, which pumps nearly 4 of every 10 barrels of oil produced worldwide, needs to trim output to avert a potential oil glut and a – highly hypothetical – price collapse.

Much of OPEC’s anxiety has less to do with the level of oil stocks held by consumers than by the price the group will seek to defend. The “OPEC basket,” a composite price of the types of oil sold by members, was $56 a barrel last week. Most analysts say oil ministers will consider action if the OPEC basket falls to $50.

IHT