VIENNA — The U.S. and other nations facing slower economic growth think OPEC should open the taps wider so cheaper oil helps them avoid a recession. OPEC ministers may think otherwise on Friday.
Participants and analysts say ministers at the ministerial meeting of the Organization of the Petroleum Exporting Countries are likely to keep output as it is.
That, in effect, would lock in prices where they are — a bleak scenario for governments, businesses and consumers worldwide who have seen oil prices rise more than 50 percent from just over a year ago.
Prices are around $90 a barrel, but natural catastrophes, a spike in Middle East tensions or other emergencies could drive prices beyond $100 a barrel on worries that supplies may be crimped. The $100-a-barrel mark was surpassed for a short while this month.
Plunging prices could also be bad news — a sign that failing economies cannot afford present energy costs.
But members of OPEC say opening up the spigots would be counterproductive because there is enough crude to meet world needs. They argue that market speculation and geopolitical factors are the key drivers of oil prices.
The Associated Press
