The Deal With OPEC It may seem weird to have pu
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Posted On: 05/03/2017 12:01:35 PM
The Deal With OPEC
It may seem weird to have put this one in the middle rather than at the top, but hear me out: it’s not as paradigm-shifting as it seems.
We’re still in the early stages of the oil recovery, and OPEC is on thin ice. More than one member country took a huge economic hit with the drop in oil prices, and Saudi Arabia is among them.
The deal, which included not only OPEC but a number of non-member countries, was a landmark agreement. Few saw it coming, and hardly anyone expected it to work.
But work it has! Just not in OPEC’s favor.
Whether or not we see the deal extend beyond May this year, the cartel has already lost.
You see, while prices have indeed gone back up — fluctuation around $50 is better than falling back to $23 any day — both Russia and the House of Saud have had to give up market share to the newest swing producer...
It may seem weird to have put this one in the middle rather than at the top, but hear me out: it’s not as paradigm-shifting as it seems.
We’re still in the early stages of the oil recovery, and OPEC is on thin ice. More than one member country took a huge economic hit with the drop in oil prices, and Saudi Arabia is among them.
The deal, which included not only OPEC but a number of non-member countries, was a landmark agreement. Few saw it coming, and hardly anyone expected it to work.
But work it has! Just not in OPEC’s favor.
Whether or not we see the deal extend beyond May this year, the cartel has already lost.
You see, while prices have indeed gone back up — fluctuation around $50 is better than falling back to $23 any day — both Russia and the House of Saud have had to give up market share to the newest swing producer...
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