LESS CASH WEAKENS INFLUENCE

Initial reactions to the announcement that individual member countries of Opec might set their own price and production levels could; not without some justification, have been a cynical "So what's new?" In the 1960s the Venezuelans pleaded in vain in Opec for 'pro-rationing' the orderly restriction of production by agreed quotas. Member states had other ideas. Iran had still not recovered the 'world share' which had been lost to neighbouring Arab producers during Dr. Mossadegh's unsuccessful attempt to buck a buyers' market. Iraq pursued its own private vendetta with the IPC. Saudi Arabia and Kuwait discovered new deposits of oil almost every time a hole was drilled, and produced increasing quantities at a cost per barrel that no other producer could match.