Eventually something will have to give. The price collapse of 1998 and 1999 taught the group a lesson in supply and demand that it will not forget in a hurry. Ultimately, though, the fate of oil prices may rest in the hands of a man for whom devastation has at times been a clarion call - Saddam Hussein. Iraq remains one of the world's most important oil exporters, and it has shown itself more than willing to slash its two million bpd exports by up to 75 per cent to flex its economic and political muscles. Opec hikes production by 2.5 million bpd, just as the Asian economic crisis bites.
Oil demand slows, excess supply floods the market and the price of crude nosedives.
Opec governments, including Saudi Arabia and Kuwait, are faced with massive budget deficits as the value of their prime asset disintegrates. The recovery begins. Rapid economic growth in the United States and recovery in Asia stimulate demand. Under pressure from the industrialised world, notably the United States, Opec boosts production four times in an attempt to cool markets. The most comprehensive survey of executive salaries in the region.