Standoff between Opec, traders on oil outlook fuelling price rise: Analyst

The standoff over oil outlook is reminiscent of earlier periods of rising prices

Opec and oil traders are now in fundamental disagreement about the market outlook and the standoff is fuelling a sharp rise in prices that could spell trouble for the global economy over the next 18 months.

The overall balance between supply and demand is “healthy” according to a statement from the Joint Ministerial Monitoring Committee of Opec and non-Opec producers last month.

The committee expressed its satisfaction regarding the current oil market outlook, according to a press statement released afterwards (“JMMC meets in Algiers to monitor developments in the oil market”, OPEC, Sept. 23).

But where the committee sees a balanced market and