OPEC Maintains Production Cuts But Fracking Controls Prices Now

This Forbes article discusses the reduced clout that the Organization of Petroleum Exporting Countries (OPEC) now has because of fracked gas. OPEC has agreed to maintain their production cuts for the purpose of supporting the oil price. Which is fine, a cartel operating like a cartel, no one really expects them to do much else but try to exercise their market power. The problem here is that they’ve not got as much market power as they’d like, not got as much market power as they used to have.

 

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