OPEC just had a meeting that failed to produce any agreement. Saudi Arabia, the biggest producer of the cartel, admitted it was one of the worst meetings in OPEC history.
Furthermore, Saudi Arabia, the leading member to push for more production, has essentially indicated that it is willing to ignore OPEC quotas and supply buyers with whatever they want. By doing so, it has dealt a death blow to the integrity of the cartel.
And no one is going to stop Saudi Arabia. What’s OPEC and its hawkish members going to do, sanction Saudi Arabia? Slap on fines? Invade it?
Oil is at $119/bbl and the world’s population is still growing 70 million a year.
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