Opec had better cap output this time

IS Opec (Organization of the Petroleum Exporting Countries) finally gearing to end its protracted market share battle or is it playing on market sentiment for price effect? We must wait till month end for an answer. Jawboning helped the cartel early this year to halt a rapid collapse in the benchmarks and double prices from January lows to above US$50 per barrel.

Petro-states are selling hope, again. Just in the first days of August, the markets were in the bear territory after slumping more than 20 per cent on US petrol oversupply concerns. In the next few weeks, oil vaulted into the bull territory on hints of producer action.

Ministers of the Opec will discuss an output freeze in Algiers on the side of a meeting of the International Energy Forum, which represents both producers and consumers, later this month.