The World Needs OPEC but OPEC Cant Go It Alone

[Jenny Considine + 2]

KAPSARC published an interesting perspective on the world oil market  this week--I encourage you to read it and would be very interested in hearing your thoughts

The global oil market is going through an extraordinary period. The twin shocks of a significant increase in global supply and a remarkable fall in oil demand appear to have no parallel in history. Together, the collapsed OPEC+ agreement and the coronavirus outbreak have put OPEC and the value of its role in the market back into the spotlight. As KAPSARC has previously studied and written, OPEC’s ability to measure and offset oil market shocks through the use of its spare production capacity has been a substantial stabilizing force, perhaps reducing oil price volatility by as much as half. However, the scale of the current disruption is too big for OPEC to rebalance the market alone.

https://www.kapsarc.org/research/publications/the-world-needs-opec-but-opec-cant-go-it-alone/

[BLA + 1,666]

the world will be a better place without 0PEC.  

LONG LIVE FREE MARKETS

OPEC+  or  OPEC++++ CUTS ARE WORTHLESS AT THIS POINT. 

Cuts would have only slowed the drop to these prices . . . . .  but not stopped them.  Analyst are projecting glut 20 to 25 mm bbls/day in the coming weeks.  This will fill the storage

Forget about Saudis and Russia for now.  I do agree with bring U.S. troops and Patriot defense missile systems home from Saudi Arabia.  

Only thing to increase prices would be Trump agreeing to a minimum prices , aka Price Fixing like Jimmy Carter did .  It would be big mistake and very damaging. 

[Zane F + 2]

100% agree with BLA. We need a FREE MARKET, with no OPEC. 

Why are people supporting a cartel - they boss us around when they feel like.

Let it end once and for all, instead of kidding ourselves that they look out for anyone but themselves.

Edited March 30, 2020 by Zane F

[Yoshiro Kamamura + 274]

You can hardly call it a "free market" when the oil sector is heavily subsidized via tax exemptions and behind-the-closed-door bailout guarantees as well as kept alive by constant influx of loans and investor money. Shale producers have produced mostly debt, yet they keep on existing - how is it even possible on a truly free market? On a free market, if you are hopelessly in debt, you are forced to declare bankruptcy, and your assets are sold to at least partially cover the losses of the lenders. US "free market" oil sector will be bailed out with public funds, i.e. paid for by the little people about whose compliance nobody even cares about. 

US economy = bizarre combination of the sweetest socialism full of safety nets for the richest and their budies (guaranteed by pet politicians bought in advance) and harsh, ruthless capitalism for the little people. We have seen it in 2008 - banks, that were bailed out by the government,  showed no mercy to the common people burdened with mortgages and kicked them on the street while enjoying the bailouts paid by their victims.

This is "free market"?