Opec growing optimistic of a pathway to higher prices

IT has taken longer than oil producers thought. But almost a year after launching an assault on its challengers, the Organisation of Petroleum Exporting Countries (Opec) believes victory is close.

Low oil prices engineered by Saudi Arabia and fellow producers are delaying billions of dollars in future investments. And the indebted US shale oil industry is counting the cost, filing bankruptcies or shedding assets.

This is the second time the enormous Saudi Arabian oil-production capacity is warding off a serious threat to Opec. Back in the 1980s, the kingdom crushed a rival offshore push and quota-busters within the group.