"OPEC's Leaky Spigot is Flooding the Oil Market," BusinessWeek, December 10, 1984. p. 323

 

Basic Argument:

 

            OPEC is unable to keep control of the market and their price structure is failing.   

 

Summary:

 

            With an upcoming OPEC ministerial meeting coming up, prices are expected to be officially lowered due to unusually warm temperatures in areas where consumers burn large amounts of heating oil and increased reserve stockpiles.  Many analysts feel that even should the oil industry sustain the winter with hopeful cold snaps, spring will bring a dramatic price drop.   With oil production rising more than demand, prices are falling with no room for a sustained recovery.  Many companies, even those considered conservative, are canceling long-term oil contracts with OPEC in favor of the softly priced spot market.