The Organisation of Petroleum Exporting Countries (OPEC) has decided to maintain a ceiling on the amount of oil produced in 2012 by the 12-member group - despite the oil price weakening globally and increasingly polarised views within the organisation. The decision was taken at OPEC’s 161st meeting in June 2012. However, analysts predict it will be difficult for OPEC – or even members within it - to resist the temptation to cut production should the oil price fall below US$90 per barrel.
THE price of oil reached a record annual average of US$100 for most of 2011 due to global demand being well ahead of supply.
By contrast, in 2012,...