VOL. XLV

No 33

19-August-2002

OPEC

OPECs Growing Dilemma

OPEC must soon face up to the long-term challenges which are threateningits pricing strategy, according to a report by Mehdi Varzi of Dresdner Kleinwort Wasserstein (DRKW) Researchentitled Oil Prices Short-Term Strength Masking Longer-Term Weakness. Mr Varzi observes that OPEC decision-making in recent yearshas maximized near term revenues by maintaining prices with the $22-28/B range.However a combination of weak demand growth, strong...