Wednesday’s announcement from OPEC about an agreement to cut production to shore up crude oil prices was met with both delight and scorn by observers.
A new oil find by the Apache Corporation is exacerbating the failure of OPEC's strategy to flood the market in order to drive out American oil producers, and is a "surprise" to members of the cartel.
Despite historically high demand for oil, inventories have never been higher, and experts say oil prices are likely to drop back into the $20 per barrel range soon.
OPEC’s current president, Qatar’s energy minister Mohammed bin Saleh Al Sada, announced Monday that the oil cartel will hold “informal” side meetings at the International Energy Forum in Algeria in late September. Not surprisingly, the topic will once again be “cooperation” among the disparate and increasingly desperate members to restrict production in efforts to force oil prices higher.
Since the crude oil export ban was lifted last December, exports increased seven times previous levels in the first three months of 2016: a lesson in free markets.
Rejoicing by OPEC that its strategy of low prices would force U.S. producers out of the market now appears to be premature.