Opec’s decision on Sunday against a further round of cuts was welcomed by consuming nations from around the world. The cartel has used the moment of enhanced credibility to tell the G20 that it was now the turn of rich countries to boost the economy.
But Opec’s decision not to cut may have had another reason. Some countries are just not able or willing to make any further reductions. Indeed, despite having promised to boost their compliance to near 100 per cent by the end of May, laggards Venezuela and Iran don’t appear inclined to follow through.
Rafael Ramirez, Venezuela’s oil minister, said today as he signed a cooperation deal in Japan that his country would not be making further cuts, while Iran denied it had any more ground to make up.