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Business Daily: Is OPEC in Control of its Members?   

03/02/2010

Is OPEC in Control of its Members?   

BBC World Service - Business Daily, Is OPEC in Control of its Members?

OPEC's Secretary-General admits his members have produced more oil than had been agreed.

OPEC's Secretary-General Abdalla El-Badri admits his members have produced more oil than agreed in their production targets. He is worried this could lead to lower oil prices and less investment.

The Secretary-General of the oil producers' group, OPEC, has told Business Daily that the global recovery is still fragile, which will affect demand for energy.  Abdalla El-Badri admitted to Lesley Curwen that OPEC producers have increasingly flouted production targets and churned out more oil than agreed. 

The question is whether OPEC is losing control of its members. Abdalla El-Badri said that there were no sanctions available to make members stick to production targets: they were ruled by a gentlemens' agreement, and he would be urging oil ministers to abide by decisions taken at meetings.   

He expressed concern about the possibility of a glut, which could depress prices and leave producers without the money they need for vital future investment. 

Plus, the BBC's Caroline Hepker reports from New Orleans on the business model of the American football league, the NFL.

And technology commentator, Jeremy Wagstaff muses on the concept of smart phones; how good are they at the original purpose of making calls?

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