Does the U.S. have the right to demand that OPEC increase supplies?
With oil hitting a record $106 that week, that seems like a relevant question. My feeling is that the U.S. has the right to demand the increase. I believe in freedom of speech and see no reason why that freedom of speech should be constrained when it comes to market things.
Obviously, OPEC is free to reply as it sees fit. I don’t think that the current U.S. administration actually wants the price of oil to drop - however, it wants to be seen as being sympathetic to the interests of those who are
Meanwhile, whether the U.S. was serious about wanting the price of oil to drop, it would take market actions that would immediate OPEC to reduce production. One such action would be to reduce oil consumption abundant to construct the current level of production unprofitable for OPEC.
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Original post by Peter Cohan
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