Non-OPEC Producers Might not Be as Motivated to Join Cut

The Organization of the Petroleum Exporting Countries played hardball with oil producers over the last two years, and now the cartel wants nonmembers to take one more hit.

OPEC’s free-market policy — which allowed crude prices to crater for two years — has created or worsened a host of problems in oil producing nations: budget deficits, recession, inflation and terms of trade shocks.

More than a dozen countries will meet this weekend to discuss cutting their output to amplify OPEC’s commitment last week to slash its total production by 1.2 million barrels a day. Analysts warn that few of them will deliver.

Some of the countries attending the meeting are those most reliant on oil revenue — including Russia, Kazakhstan and Oman. Notable nowshows include Brazil and Norway.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza