At this week’s OPEC meeting, expect much ado about nothing – The Washington Post

The Organization of the Petroleum Exporting Countries (OPEC) will hold its next ministerial meeting Thursday in Vienna. Expect much ado about nothing.With Saudi Arabia and Iran locked in continuing geopolitical rivalry, OPEC probably won’t come to an agreement to change its oil output targets. Even if it does, however, history suggests that such agreements are largely pointless.Some OPEC members, such as Algeria, Iraq and Venezuela, will want the organization to do what cartels do: constrain supplies and raise the world price of oil. But OPEC won’t meaningfully reduce oil supplies. It can’t. The organization has no way of enforcing the collective cooperation necessary to move the markets.

Source: At this week’s OPEC meeting, expect much ado about nothing – The Washington Post

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