Saudi Arabia's leading government-funded think tank examines the potential impact on the oil markets of a break-up of OPEC.
The Organization of the Oil-exporting Countries, established in 1960, coordinates the petroleum prices between producers and maintains a regular supply to consumer countries.
In a remarkable step for a country that has dominated oil exports for 60 years, an investigation into the dissolution of the cartel has been demanded by the top Saudi officials who regard it as a high priority economic policy.
The organization of oil-exporting countries, established in 1960, coordinates petroleum prices between producers and maintains regular supply to consumer countries
The movement is coming under increasing pressure on the Saudi government, including from US President Trump, who accuses the cartel of rising oil prices.
While investors temporarily distanced themselves after the Saudi journalist Jamal Khashoggi in the US was brutally murdered by regime accomplices.
Nevertheless, the president of the think tank, Adam Sieminski, said that the study was not motivated by Trump's powerful statements or increased global control.
The kingdom knows that the demand for oil will not last forever … so you have to think about OPEC, & # 39; said a senior adviser.
The movement is coming under increasing pressure on the Saudi government, including from US President Trump, who accuses the cartel of rising oil prices. While investors have temporarily distanced themselves after the US-based Saudi journalist Jamal Khashoggi was brutally murdered by regime accomplices (Trump with crown prince Mohammed bin Salman)
The study is part of a broader discussion between Saudi officials about the future of OPEC, the WSJ reports, with leading figures in the kingdom that anticipate increasing demand as the supply decreases in the coming decades.
It is because the cartel received more and more angry calls from Trump about the alleged manipulation of oil prices at the expense of large oil-consuming countries – such as the US.
There has also been talk of legislation in the US called NOPEC, which would limit the influence of the OPEC and call them an illegal cartel.
Although it has been suggested that Saudi Arabia is planning to dissolve the OPEC shortly, some have questioned the long-term motives for the move given the domination of the kingdom within the group.
Meanwhile, internal quarrels between founding members, namely Iran and Saudi Arabia, have caused more turmoil, with Tehran accusing officials in Riyadh of acting on behalf of America, particularly after US sanctions against Iranian oil exports
Saudi Arabia together with Russia has the most influence in the collective and the couple joined forces in 2016 to curb oil production, because the supply threatened to exceed the demand that had created super low prices.
The coordination between the two has upset some OPEC members, who have complained that they are being put out of business by decision-makers in Riyadh and Moscow.
Meanwhile, internal quarrels between founding members, namely Iran and Saudi Arabia, have caused more turmoil, with Tehran accusing officials in Riyadh of acting on behalf of America, particularly after US sanctions against Iranian oil exports.
Nevertheless, Saudi Arabia remains the largest exporter of the cartel, accounting for roughly one-third of the collective output of 33 million barrels per day of the group. Although the minister was regarded for a long time as the de facto principle of the group.