Opec finds no quick end to its conundrum

OPEC, the oil producers' group, must be puzzling over how to crack the current supply conundrum. Their five-month-old market share strategy has not yet humbled the upstart American shale oil producers.

The world still has more than enough supplies. And prices seem to have settled into a durable range, without ever collapsing to US$20 a barrel as the doomsday forecasters held or not even hitting the bottom reached in the wake of the financial crisis seven years ago.

The benchmark Brent has swung in a US$43-70 per barrel range since the recovery began in January from a 60 per cent fall over six months. Recently, the benchmark nudged the November level when the Organization of the Petroleum Exporting Countries (Opec) declared its hands-off market policy. The policy will also thwart fresh investment elsewhere, paving the way to higher prices in the future.