The 2016 OPEC (Organization of the Petroleum Exporting Countries) meeting in Algiers later this month has received undue importance from market analysts hoping that Kingdom of Saudi Arabia and non-OPEC producer Russia are seeking a freeze on production. Both have been fighting for market share in China, with Saudi Arabia unusually offering large volumes on the spot market as long-term contracts become more difficult to obtain from buyers. Iran, Iraq and Saudi Arabia have been undercutting each other for market share in India over the past six months. Given the scenario of OPEC members fighting each other for market share, it seems unlikely that an agreement will be reached, although mounting GCC fiscal deficits, which could reach $900 billion by 2021, may focus their attention, especially as rumors suggest that Saudi Arabia and other GCC members are now working near full production capacity. Excess supply has led to a […]