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.