OPEC's decision to keep its output unchanged Wednesday reflects the
changing balance of power within the group, says a Olivier Jakob at
Petromatrix. "It seems that
Iran
has
replaced
Saudi Arabia
at
the political powerhouse within OPEC...[it] has not allowed
Saudi
Arabia
to get its wishes,"
Jakob says.
"The problem for the Saudis now is if they don't carry on with
their plan of incremental production increase, they become subordinated to
Iran
,"
he adds. ICE July Brent +129c at $118.07/bbl. Nymex July crude +157c at
$100.66/bbl.