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OPEC is gearing up for its highly anticipated meeting this week, and experts say its struggle to balance oil supply and demand will shape global economics.
If OPEC cuts oil production on Wednesday it could allow producers, including those in the US, to step in and ramp up production at OPEC’s expense, while failing to cut production is almost certain to keep markets oversupplied and prices low, the Wall Street Journal reports. Either outcome will shape the global economy and impact markets sensitive to oil prices.
Experts say each oil producer is ultimately looking after its own interests and all are reluctant to lose market share, and since large oil producing nations like Russia, Brazil and Saudi Arabia are watching their GDP fall it’s unlikely OPEC will reach a deal to seriously curb production. [WSJ]
