OPEC loosing it's influence? by Lucia Mitrova

Organization Of Petroleum Exporting Countries (OPEC) met this weekend in Saudi Arabia to discuss cost of oil and digression of US dollar. OPEC was established in 1960 to stabilize prices. But some say, that OPEC is nowadays loosing the influence. "OPEC is still a major force, but it's certainly far less influential that in the 70s or 80s. What we saw at this conference in that leaders of OPEC were giving assurances that they'll do all they can to maintain the stability of the oil supply. But can they do it? We don't know," says Mustafa Alani, at the Gulf research center in Dubai, United Arab Emirates. The discussion was also about the topic, that was not so important in the past, but they are now. Issues like climate change, pricing oil in US dollars, developing nations. Iran and Venezuela have been pushing for the market to be moved from the US dollar into Euro. But analysts say it is very improbable. They've also been pushing for higher oil prices. Saudi Arabia views this as a politicization of the commodity. "Oil ... should not become a tool for conflict and emotions. Those who want OPEC to become an organization of monopoly and exploitation ignore the truth," said Saudi King Abdullah. "There are basically two camps, Iran and Venezuela and one led by Saudi Arabia. What happened at this conference was that the leaders of OPEC & Saudi Arabia and the Gulf states & made it clear they oppose the use of oil as a weapon, so the radicals within OPEC were isolated," says Mr. Alani, the oil analyst. "What's going to happen now is the leaders will do everything they can to maintain supply. But there's very little they can do if there's an attack on Iran or something of that nature. In that case, prices will double, perhaps go to $300 a barrel."

by Lucia Mitrova for PocketNews (http://pocketnews.tv)

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