Advertisement
The excellent John Kemp writes that scheduled production increases indicate a shift in OPEC⁺ strategy, driven by Saudi Arabia, from reducing stockpiles and driving prices to $100 per barrel.
The group is focused on stabilizing or regaining market share it has lost in the last two years to rival producers in the US, Canada, Brazil, and Guyana.
Official and voluntary production cuts by Saudi Arabia and other OPEC⁺ members have not increased prices, but likely prevented a more severe collapse.
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Advertisement