OPEC is Finding it Hard to Cut Output

“Tensions are emerging within the Organization of the Petroleum Exporting Countries over which member countries should trim oil production to make room for a resurgence in Iraqi exports and the possible return of more Iranian crude to world markets if sanctions are eased.

There is no expectation of a decision to cut back at the OPEC cartel’s meeting in Vienna on Wednesday. The group of 12 of the world’s largest producers, though long riven by squabbling, has kept its overall production ceiling at 30 million barrels a day since December 2011.

OPEC expects overall demand for its crude to drop by about 300,000 barrels a day next year and some members are pushing to trim output, according to people familiar with the debate.

Members will have to decide whether to cut production as early as the first half of the year, with the risk that short-term global supply might build to a level where prices fall, an OPEC official said…..”

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