production quotas that have been in place since January 1, 2009. Also to no one’s surprise, OPEC elected Iran as president of the organization for 2011—finally.
None of OPEC’s members is abiding by the quotas, but OPEC’s formal announcement didn’t even make the usual passing reference to the need for more discipline by members.
There was some talk about trying to push the price higher to make up for the decline in the value of the dollar, in which oil is priced. Libya and Venezuela publicly made that call, suggesting a price of $100 a barrel as opposed to the $75 around which oil has hovered for almost a year. But they found little support. Most members are more concerned about pushing the world back into recession with higher prices.
The dollar has weakened since June, but is at about the same level now as it was at when the current quotas were set almost two years ago. And the dollar was much weaker one year ago without eliciting any changes by OPEC.
Iranian Oil Minister Masud Mir-Kazemi has been alternate president this past year. In keeping with tradition, the alternate president was elected president for the coming year with Iraqi Oil Minister Hossain ash-Shahristani serving as alternate president beginning January 1.
The presidency doesn’t carry with it much authority, however, as the main power resides with the secretary general..
This was the first time since the revolution that Iran has been allowed to serve as president, despite the fact that with 12 members and one-year terms Iran would normally have already served two tours in the presidency.
Iran has also been shut out of the secretary generalship since the revolution.
