Kuwaiti oil strike may help prompt the cartel to lift output
by Myra P. Saefong
Several of the world’s largest oil producers failed to reach an agreement to freeze output to help alleviate a glut of global crude supplies, but the Organization of the Petroleum Exporting Countries may soon need to start discussing an increase in output instead.
The logic is a bit hard to grasp, but not that difficult if you look at some of the reasons why producers couldn’t come up with a deal to cap production—and why oil prices didn’t end up taking that big of a hit on Monday.
[…] A fight for market share comes to mind first. OPEC, in particular cartel heavyweight Saudi Arabia, had previously made it clear that it didn’t want to lose its share of the oil market to non-OPEC producers, such as Russia and the U.S.