EMEA News
Saudi Arabia's Oil Strategy Causing "The Worst Internal Crisis" in OPEC's History
John Defterios, emerging markets editor for CNN Money, says the Organization of the Petroleum Exporting Countries (OPEC) is facing "the worst internal crisis in its 55-year history" due to squabbling over its strategy to quash non-OPEC producers, regardless of the consequences.
Defterios notes that he arrived at his opinion when Emmanuel Kachikwu, oil minister for Nigeria, said he wanted an emergency meeting to discuss the situation, only to have the United Arab Emirates (UAE) oil minister reject the suggestion.
Defterios was chair of the Abu Dhabi energy forum in which this incident took place.
The editor goes on to describe OPEC as being "deeply divided" into two camps: one with nine members including Algeria and Venezuela, who want to abandon the rival four-member (Saudi Arabia, Kuwait, Qatar, and the UAE) camp's crusade to marginalize non-OPEC producers.
According to Kachikwu, a "near mutiny" at OPEC's December meeting occurred when African and Latin American producers threatened to walk out due to the pain they're feeling.
But Defterios adds, "OPEC only works by unanimous decision - making the effort to corral all members incredibly difficult at a time when their economies are hurting badly."
OPEC's dysfunctional attributes earned global headlines when its December 4 meeting in Vienna, Austria ended with members failing to agree on an oil production ceiling.
