OPEC halts US oil take-over of the market

Donate

The Organization of Petroleum Exporting Countries has finally taken measures to stop US oil boom.

OPEC halts US oil take-over of the market

Pump jack oil field in the US

The organization has created a plan to get back in control of the oil sales since the US showed themselves resistant enough to the crisis happening for about a year as a consequence of the oil price collapse in the market.

OPEC has considered a battering competitors strategy in order to restore a fairer share of the market by means of the constraint of the US oil output to push up the price per barrel again.

Until now, the less wealthy member countries of the organization have suffered several deficits in their economies due to the low prices and drilling reductions, but the balance is about to get restored. In other words, if US oil offer in the market is capped, the prices will increase gradually since the other OPEC members will also be able to compete in a more balanced ground.

As reported, US oil output has decreased these last months, which means a loss for the American but at the same time, a recovering for OPEC members revenues.

Written by Lisbeth Mechter

Donate

SouthFront

Do you like this content? Consider helping us!