OPEC gave the strongest signal yet that it is happy with today's lower oil prices, as its secretary general told an oil conference its production is unlikely to change much in 2015.
There is no need to panic at the crude price drop, Abdullah al-Badri said at the Oil & Money conference in London.
“If prices stay at $85 [for Brent crude], we will see a lot of investment, a lot of oil, going out of the market,” Badri said. “About 65 per cent of the producers, they have high costs. Not OPEC.”
His statement indicates the oil cartel is content to let oil prices stay at the $80 US a barrel range, as that would hurt U.S. shale producers, and Canadian oilsands producers, much more than OPEC.
West Texas Intermediate crude was trading at $82.49 a barrel in New York on Wednesday morning, down $20 from its peak in July.