Opec must now plan for a retreat

RECENT weeks have particularly been vicious in the crude oil market, humbling even those who have been dubbed "gods" in the game. Prices have slumped nearly a third since June when petrol demand has traditionally been strong.

The architects of the Organisation of Petroleum Exporting Countries' market share strategy should be pleased with the price weakness. They must remove all existential threats in the mid-term while also making the most of the opportunity to produce before the increased Iranian output hits the market.

But Opec is hopelessly behind the goal nine months after last November's decision to ratchet up production. Its output is about 2 million barrels per day (bpd) more than what the group considers as adequate.