Tough Times Force OPEC Members to Close Ranks

Divisions within OPEC have eased as the dual threat of the global economic crisis, and climate change talks force oil producers to be pragmatic and unified, analysts said on Sunday.

But the stance of the price hawks has since lost support, leading to a convergence of positions within the bloc.

“What happened makes you think. An oil price of 75 dollars is higher than they could have hoped for. Even the most hawkish nations are finding it hard to ask for more,” said Francis Perrin of the Oil and Gas Journal.

This turnaround came about because producers were afraid of another price collapse, according to Julian Lee, an analyst at the Centre For Global Energy Studies in London. Another reason for the appeasement of the Hawks was that the countries which traditionally call for high prices have proved less than effective in implementing decisions taken by OPEC.

“When you see in the OPEC bulletins the rising concern linked to climate change, you can see those producers are closing ranks,” said Perrin. “In the hardest times in its history, OPEC tends to stick together.”

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