Opec agreed yesterday to hold its crude production ceiling at 30 million barrels per day despite oversupply concerns and competition from cheaper shale oil. The Organization of Petroleum Exporting Countries, which pumps out about one third of the world’s oil, failed again to decide on a new secretary-general amid group tensions, instead keeping Libya’s Abdullah El-Badri as its administrative head for 2014.
And Libya, where output of crude oil has fallen sharply on unrest in the country, will assume the cartel’s rotating presidency for next year, Opec added in a communique. The decision to maintain the oil ceiling had been widely expected by markets. The decision to maintain the oil ceiling had been widely expected by markets. The cartel, which could see higher production from its members Iran, Iraq and Libya in coming months, nevertheless faces competition from non-OPEC Agrees to keep oil producers of shale oil. The International Energy Agency has said repeatedly that the shale energy boom is changing the landscape of global energy markets. We don’t say we are not concerned” by shale, El-Badri told a press conference on Wednesday — but insisted that OPEC could accommodate US shale output, currently at 2.7 million barrels per day and set to rise further. OPEC said in its statement that “global economic uncertainty, with the fragility of the eurozone remaining a concern” was the biggest challenge facing world oil markets in 2014.