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Nobody wants to cut production, unless everyone else does so too. Otherwise they're just giving up a chunk of their revenue stream for a negligible rise in pric
by somebodythere 6y ago
Nobody wants to cut production, unless everyone else does so too. Otherwise they're just giving up a chunk of their revenue stream for a negligible rise in prices. It's a classic prisoner's dilemma game.
Anyway, OPEC+ did cut production, a little bit. The market is saying it's not enough, at least in the near term.
- lonelappde 6y agoSurely when storage is full you do start to want to stop production?
- kube-system 6y agoThat's what producers would do in a competitive and rational market, but oil is not that. Oil is notoriously anti-competitive and political. https://en.wikipedia.org/wiki/2020_Russia%E2%80%93Saudi_Arabia_oil_price_war https://en.wikipedia.org/wiki/2020_Russia%E2%80%93Saudi_Arab...