OPEC plans to protect its market share by increasing production, begin to have a more tangible price especially for the most vulnerable members of the organization, writes Bloomberg. The collapse of oil prices to their lowest levels in six years entails risks to strengthen political instability in countries such as Algeria, Iraq, Libya, Nigeria and Venezuela. The problems are increasing even in OPEC leader Saudi Arabia, which faces the highest budget deficit of three decades.
He noted that Venezuela is facing serious political and economic crisis in the short term. This is evident in the price to insure investors in venetsualski debt, which has risen to 12-year high.
RBC Capital Markets sees potential risks in Nigeria, where the local currency has devalued by almost 8%, and state reserves are depleted quickly. As the risk members of the organization are cited Libya and Iraq, which have been torn apart by civil wars. Analysts see and increase in threats in Algeria, where the expected change of the leadership could lead to political instability. State of North African OPEC account deficit last year after more than a decade of surpluses.