FT: Opec unlikely to cut production target

Opec is unlikely to lower production to support tumbling oil prices because the dynamics of the global market have changed by the growth of unconventional oil, according to the International Energy Agency.

Swelling supplies and slowing economic growth have led to slide in the price of Brent crude – the international oil benchmark – to four-year lows. ICE November Brent, which has fallen more than 20 per cent since mid June, dipped 31 cents to $88.58 in early trading.

Sharp drops in recent weeks have fuelled speculation that Opec might adjust its production target of 30m barrels of oil per day to balance the market and support prices.

But Antoine Halff, author of the IEA’s closely watched monthly report said Opec was “not likely” to play its traditional role swing producer because the changes to the make-up of the oil market.
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