Opec’s 60th anniversary has been overshadowed by a generational oil market crisis sparked by the coronavirus pandemic. Few would dispute that the producers’ organization and its allies have pulled off a remarkable achievement in removing nearly 10mn b/d of production from the market at the height of the crisis, but equally the longevity of the planned cuts will pose a major challenge to cohesion in the coming months.
The producer group has certainly had a tumultuous year. First came the collapse of the Opec+ discussions in March and unravelling of the existing production deal as the coronavirus pandemic gathered pace (MEES, 6 March). This resulted in a swift market-share battle between the alliance’s heavyweights in April (MEES, 13 March), before ultimately the industry crisis brought about the historic 12 April agreement (MEES, 17 April). (CONTINUED - 1108 WORDS)
