Verleger Suggests Crawling Peg System for Differentials

One solution to OPEC's perennial problems with differentials might be to draw on the experience of the foreign exchange markets and adopt a "crawling peg" system in which differentials would be altered frequently within a relatively narrow range, according to Mr. Philip E. Verleger Jr. of Charles River Associates (CRA).

Writing in the December issue of the CRA Petroleum Economics Monthly, Mr. Verleger argues that...