A long analysis of Opec’s  problems, which are all connected to the market power of consumers following the oil-price crash. NB. Since Tom Nicholls and I wrote this, oil prices have almost doubled. But don’t be fooled: Opec still has medium-term problems to resolve. Global demand is still weak and the group alone has about 6.5m b/d of spare capacity. The full article was in Petroleum Economist’s April issue (accompanied by the leader, above), and is available on the site.

The oil-price collapse has weakened Opec. The cartel is scrambling for a response, write Derek Brower and Tom Nicholls from Vienna

FACED WITH a depression in oil prices, Opec’s strategy has always been to cut production. But the cartel’s ability to effect a supply side rescue has, this time, been overwhelmed by the fundamental shifts under way in the global economy. Demand rules the game, and Opec’s cards are suddenly very weak.

Last month’s ministerial meeting implicitly acknowledged this. The group ruled out another immediate cut in supply, pinning its price hopes on a recovery in the world’s economy next year and tighter compliance this year with quotas it already has in place. (…) The rest of this long analysis is only for subscribers, I’m afraid.