What would happen if Saudi Arabia & Co. just decided to turn their backs on the cartel and sell cheap?
Cheating in OPEC has happened before and used to be fairly common. Saudi Arabia is growing concerned over hydraulic fracturing increasing US reserves that they want to drive down prices to prevent entry into the market. IRAN, VENEZUELA and other despots need $$ to support their failing economies so want prices high. It should get interesting.
OPEC has about 30% of the world’s oil supply. The Saudis are the world’s largest exporter of oil. They could, as they have done in the past, up production, which would reduce the price. The Saudis are the only OPEC country with enough excess capacity to make a difference. It is interesting that Iraq and Iran want to keep the price as it is, but not unexpected. They both need the money badly—the Iraqis to rebuild their country and the Iranians to keep their flagging economy from going even further down.