The FINANCIAL — Less than a month before the Organisation of Petroleum Exporting Countries meets formally, the organisation once again is riven over production increases implemented by Saudi Arabia and its allies outside the group's formal quota system.
Yet while the differences will no doubt continue through the December 14 meeting in Vienna, few expect a serious discussion of the organisation's official quota system. Rather, some key Opec figures are beginning to centre on the June meeting as the next time Opec will take out its sketchpad and debate whether output allocations need to change.
An agreement by Opec to revise its quota system would seem to benefit the group collectively and its members individually. A better consensus on production targets within Opec could help stabilise oil markets that have been roiled by uncertainty over how much oil each member intends to pump.
Yet Opec remains split after Saudi Arabia and its allies boosted output this summer to make up for lost Libyan crude. Iran says Saudi Arabia, Kuwait and others should now return to their former output because Libya has restarted significant production.
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