Saudi Arabia is to Opec what Germany is to the EU. As the dominant member of each group, both can talk about reaching consensus in the interests of all, but their economic power means that it will be a consensus set on their terms.
Saudi Arabia’s new Opec consensus is forcing austerity on its fellow members as the price for seeing a new production policy through. So it is fitting that Saudi oil minister Ali Naimi yesterday chose a meeting of the German-Arab Friendship Association in Berlin to reiterate the circumstances behind that policy. Continue reading