Venezuela

27 Oct

Oil

in Algeria, BP, BP Plc, Iraq, Nigeria, oil, oil stocks, Organization of Petroleum-Exporting Countries, Statoil, StatoilHydro ASA, Venezuela

Strikes in Venezuela and the prospect of war in Iraq make Opec's belated decision on production and quota levels look irrelevant. But the cartel's action provides an important boost to its credibility. Its members account for only one-third of global production, but they supply two-thirds of exports. Restoring confidence depends partly on Venezuela, Nigeria and Algeria, the most likely defaulters, sticking to the new limits.