Petrostates in Peril
Are OPEC’s Cuts Working?
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  • ——————————

    Not working well for OPEC.
    Gas still around $2 a gal here, just as it was in Dec. of 14….

    • D4x

      My new theory is that looking at oil & gas to break Russia will backfire. Russia is going to break the USD with gold, or, at minimum, survive the new sanctions.

      Am having flashbacks to 1975, when I passed on the idea of buying one Kruggerands at $100 per ounce.

    • D4x

      Dhako moved to TNI, TAI’s divorced brother. He must have read WigWag’s explanation of that split, or just moved on. The post is by Robert Kaplan, one of my favorite geopolitical analysts, until he became fixated on “The president, by any account, simply lacks the decorum of all former modern presidents.” Here is his attempt to support Wilsonian ‘liberal order’. Surprised to find Dhako, one who sounds re-booted into a more literate bot. Thought you’d like to know Dhako moved on. I wonder if his reboot signals a shift in China walking back the arrogance.

  • CaliforniaStark

    Rule number one on any cartel attempting to control the price of a commodity: you must have what amounts to a monopoly on production. OPEC lost this because of fracking. Everything time OPEC makes a futile attempt to raised oil prices by reducing production, it benefits the U.S. economy. The medieval mindset of certain Mideast leaders somehow cannot comprehend this fact.

    • LakeLevel The

      It is amusing to read of oil sheiks wondering why American oil producers won’t join them in their price fixing, not knowing such anti-competitive strategies are illegal in the US.

    • Kevin

      You don’t need to be a monopoly, just be the low cost high volume producer who is willing to drive prices through the floor when others don’t play ball and stick with their allotment. Saudi Arabia lost its nerve a couple of years ago.

  • JamesDrouin

    “Are OPEC’s Cuts Working?”

    Yes, they are.

    However, the ‘problem’ isn’t “supply”, it’s “demand” … specifically “demand for gasoline” which is both the biggest component of refined oil AND the most profitable AND is still a paltry ~40% of what it was prior to the start of America’s Second Great Depression 10 years ago.

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