InvestorQ : I hear that the OPEC is no longer as powerful as it was before in setting oil prices; is that really true?
vaishnavi mhatre made post

I hear that the OPEC is no longer as powerful as it was before in setting oil prices; is that really true?

Answer
image
Mary Joseph answered.
8 months ago
Follow

That trend may be just about beginning to show. The limitations of the OPEC as a price influencer became obvious when the crude prices continued to fall despite Libya’s daily output falling by 1 million bpd. Between 2017 and 2018, Russia had collaborated successfully with OPEC to keep oil prices at elevated levels. However, with the swing producer and the swing consumer veering towards lower oil prices, there is only so much that OPEC and Russia can do. That possible explains why Russia has been reluctant to commit itself to additional supply cuts beyond this level. OPEC and Russia cannot afford to look half baked in their efforts to swing prices. Their silence is pushing prices lower and that is the major reason there is no support for oil prices.

1 Views