| OPEC appears to be standing firm to its commitment of keeping oil exports constant in an effort to squeeze marginal oil producers in the U.S., Russia, and elsewhere out of the market. The theory is, pain today for gain tomorrow.
This general plan has been done before, as fellow Fool Tyler Crowe recently pointed out here. The oil glut of the early 1980s shocked the market and countries like the U.S., who were growing oil production, suddenly stopped drilling and became major OPEC oil importers. The flood of supply stoked increased consumption, lower production, and higher market share and revenue for OPEC. But will the strategy work again?..............................................Full Article: Source
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