OPEC Nations Face a Balancing Act |
| Wall Street Journal - Apr 18, 2011 |
After boosting spending to quell unrest, OPEC nations now need higher annual oil prices—estimated to around $95 per barrel in some cases—to make their budgets work, analysts say.
As democracy movements in North Africa continue, members of the Organization of Petroleum Exporting Countries find themselves facing a delicate balancing act. On one hand, the so-called Arab Spring—democracy movements in North Africa and the Middle East—are causing these countries to increase spending on items like jobs and security to keep the peace. But the cost of political stability is higher long-term oil prices that could threaten Western demand.
Over the weekend, Saudi Arabia—which has long advocated more moderate oil prices—took the surprising step of joining Iran in complaining there is now too much oil on the market, which threatens to drive the price down. That has created an unusual situation in which the Saudis and the Iranians, who have long advocated higher prices, apparently agree on energy policy.
Read Full Article from Wall Street Journal
- Posted: 2011-04-18 14:57:21
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