Trouble ahead

2 June 2016 By Andy Critchlow

Britain leaving the EU would present the cartel with a tricky demand problem. Brexit could slow economic growth in Europe and reduce consumption of crude in the world’s third-largest market for fuel. If that happens OPEC may have to cut output, or risk prices falling again.

This content is for Subscribers only

To access full Breakingviews.com content you must be a subscriber. Please use the following link to request a trial.

Context News

The Organization of the Petroleum Exporting Countries (OPEC) meets on June 2 in Vienna.

The meeting of the 13-member oil producing countries’ cartel will be the last before voters in the UK cast their ballot in a referendum on June 23 on whether to remain in the European Union.

The Organisation for Economic Co-operation and Development (OECD) warned on June 1 that a so-called Brexit could reduce confidence and result in a “series of financial shocks” in Britain and other European economies. Real GDP in European countries other than the UK could be around 1 percent lower by 2018 if the UK votes to leave, compared to a scenario where it votes to stay.

Email a friend

Please complete the form below.

Required fields *