Monday, May 30, 2016

Can Opec Remain Relevant? wochit Business

Published on 30 May 2016
As the Organization of Petroleum Exporting Countries meets on June 2, questions are rising about the oil cartel’s continuing relevance. Many Opec members have suffered as the oil price has collapsed and countries, most notably Saudi Arabia and Iran, have fought to retain market share rather than set prices by adjusting production. Unarguably the price war has also hurt the U.S. shale industry as many Opec members had wanted. Increased demand because of the low prices is adding to their optimism that the price war has worked. The higher prices mean oil producers can breathe a little easier, although even at $50 those prices aren’t making money.

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