Opec policy of flooding market a boon to Asia

Hong Kong

THE world's biggest oil consumers could hardly have hoped for a better Opec meeting.

The group that supplies most of Asia's crude effectively decided to abandon production limits in the hope that unrelenting supply of cheap oil will squeeze out rivals. With prices trading near a six-year low amid swelling global stockpiles, a policy of continuing to flood the market gives little reason for a rebound in prices, according to IG Ltd.

While the collapse in crude has triggered the worst slump in the energy industry since the 2008 financial crisis, it's been a boon for Asian economies dependent on imports, helping temper inflation, support household spending and bolster refining profits. After the Organization of Petroleum Exporting Countries decided that "everyone does whatever they want", in the words of Iran's o…