UAE: Nothing Changes for OPEC Even if Oil Hits $40

by Ship & Bunker News Team
Thursday December 18, 2014

Even if oil reaches as low as $40 per barrel, the Organization of Petroleum Exporting Countries (OPEC) won't make any moves to help control prices, according to the United Arab Emirates (UAE), reports Bloomberg. 

"We're not targeting a price; the market will stabilize itself," said energy minister Suhail Al-Mazrouei, who added that even if oil reached such lows, OPEC would likely wait at least a quarter before considering an emergency meeting. 

The price of oil has crashed since September, but took another nosedive when OPEC announced in late November that it would maintain its production ceiling of 30 million barrels per day. 

The industry has been faced with a an oil glut as American shale gas production has ramped up, while supply hasn't been affected by either political turmoil in either the Ukraine or the Middle East.

OPEC countries such as Saudi Arabia are now reportedly fighting for market share, having chosen to take the hit in oil prices in the short term in order to preserve its place in the long term. 

The decision however, has left some wondering whether OPEC has the ability to hold onto onto its cartel on oil prices anymore.