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Who will rule the oil market?

Daniel Yergin 

A historic change of roles is at the heart of the clamour and turmoil over the collapse of oil prices, which have plummeted by 50 per cent since September. For decades, Saudi Arabia, backed by the Persian Gulf emirates, was described as the "swing producer." With its immense production capacity, it could raise or lower its output to help the global market adjust to shortages or surpluses. But on November 27, at the Opec meeting in Vienna, Saudi Arabia effectively resigned from that role and Opec handed over all responsibility for oil prices to the market, which the Saudi oil ...

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First Published: Sat, January 24 2015. 20:56 IST