Does the U.S. have the right to demand that OPEC increase supplies?
Posted by: in Stocks Money NewsWith oil hitting a record $106 this week, this seems like a relevant question. My feeling is that the U.S. has the right to demand the increase. I believe in freedom of speech and see no reason why that freedom of speech should be constrained when it comes to market matters.
Obviously, OPEC is free to respond as it sees fit. I don’t think that the current U.S. administration actually wants the price of oil to drop - however, it wants to be seen as being sympathetic to the interests of those who are paying to enrich the oil producers.
Meanwhile, if the U.S. was serious about wanting the price of oil to drop, it would take market actions that would prompt OPEC to reduce production. One such action would be to reduce oil consumption enough to make the current level of production unprofitable for OPEC.
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