Opec thinking of self-preservation, not market expansion

OPEC's recent agreement to curb its runaway oil production is a capitulation to new energy and environmental realities. The group has lifted output by about 11 per cent over the level in November 2014, when it opted for a market share drive, but it has been achieved at a terrible cost to itself.

The Organization of the Petroleum Exporting Countries, planning to reduce output up to 700,000 barrels per day (bpd), faces an even tougher challenge of splitting the burden among its 14 members. Iraq has already disputed Opec numbers for its production and Iran has staked a claim to 12.5 per cent of the total.

The agreement at Algiers in September came eight months after ministers began airing the plan and last April's failed attempt. Iran may now cap output at a higher level after its refusal then made the Saudis scuttle a Doha freeze plan. Both Nigeria and Libya are also free to lift their struggling outputs. Thus, holding production wit…