OPEC Price Band Not very long ago, oil prices traded at well below $20/b and OPEC anxiously came up with a mechanism which it termed as “OPEC Price Band’ $22-$28/b”. The rationale for this price band, was that OPEC members would find it sufficient for the growth of their oil and gas industry while the price was high enough to meet their government budgetary requirements. However, only a few years after this mechanism was introduced, oil prices exploded upwards and OPEC was forced to abolish its own price band in favour of higher oil prices. Burgeoning Oil Prices – OPEC Fortune Oil producers always look for higher oil prices, and why not? It improves profitability, makes more funds available for the development of oil and gas resources and meets the ever-growing budgetary requirements of the governments. Oil prices rose higher and higher, and in July 2008 peaked […]