OPEC and Oil Companies Fight Over Oil Crash at World Economic Forum

The Organization of Petroleum Exporting Countries defended its decision to not help stop the oil price collapse as other speakers criticized the move.

According to Reuters:

The strain the halving of oil prices since June is putting on producers was laid bare when non-member Oman voiced its first direct, public criticism of the Organization of the Petroleum Exporting Countries’ November decision not to cut production but instead to focus on market share.

Oil prices have collapsed to below $50 a barrel as a result of a large supply glut, due mostly to a sharp rise in U.S. shale production as well as weaker global demand.

Abdullah al-Badri, OPEC’s secretary general, said:

If we had cut in November we would have to cut again and again as non-OPEC would be increasing production. Everyone tells us to cut. But I want to ask you, do we produce at higher cost or lower costs? Let’s produce the lower cost oil first and then produce the higher cost

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