They keep bitching about oil prices being too low and they are going to cut production. Isnt it obvious to them that when they cut, that just gives another non-OPEC country an excuse to sell more oil without the price dropping? Do they really think THEY can control oil prices? I mean maybe if ALL oil producing countries were OPEC members, it would work, but you cant have 40% of the market share and then hope to control prices. Or are they just doing this so their people THINK they are doing something and dont start a coup or something cause they know their citizens are bunch of psycho, self detonating, crazy MF's?
Opec is as dependend on high oil prices than the US is on it's military industrial complex so you have oil pumping on the one hand and war mongering on the other hand and the crowd loves it.
It works on the way up where DEMAND is outpacing supply at the margin, but on the way down from record historical prices, demand "destruction" is really the 800 lb. Gorilla. Besides, its in their best interests right now to allow oil to break $80 ( which it obviously has ). This gets rid of all of the oil production and alternative energy that was coming online due to record high crude prices, which ate into OPEC's marketshare. The Oil Sand projects in Canada come to mind. Not really profitable at these crude oil prices. When the North American and Asia Pacific economies are doing well and growing, OPEC is as significant as they ever have been. But when the world economies are heading off a cliff, all they can do is pay "lip-service" and "weather" the economic storm.
They need to cut sufficiently that the non-OPEC countries can't fill demand. In the long run they should let the non-OPEC countries deplete their reserves. Whoever has the last oil will make a killing when these other country's reserves run low.
Saudi is #1, Russia #2 If Russia were to decide to join OPEC and refuse to accept US Dollars, it would be a game changer.
Russia does want it They already offered China to trade in local currencies If China agrees all small players around will join so yuan and rouble will become powerful regional currencies
Just an FYI . . . At current production rates, Mexico will EXHAUST their reserves in only 8 years. They are our #3 supplier of crude, next to the Saudis and Canada.