This article really sums up how OPEC can not come to an agreement on how much they are going to cut down on production. Some OPEC countries are in an agreement on how much they should reduce production, but others do not agree, which is why the agreement has not been finalized.
Iran and Iraq are not in agreement with the current production cut because they have had sanctions, which they do not believe OPEC is taking into account. Saudi Arabia does not agree with this cut in production because they believe that all members need to participate in this production cut. The two members that are not participating in the production cut are Libya and Nigeria. Indonesia's energy minister said that he really doesn't know if an agreement will be finalized because the feelings between all the countries are so mixed.
If OPEC does come to an agreement and decides to cut production, then this will have an extreme positive effect on United States oil companies. This cut in production will increase oil prices, which means we will look to invest more money into United States oil companies, which could increase employment. It will be interesting to see what Trumps plan is to help the oil industry in the United States, as the dramatic decrease in oil prices a few years ago really hurt that industry, as many oil companies were forced to shut down.
Link: http://www.msn.com/en-us/money/markets/opec-deadlocked-as-iran-saudis-harden-positions-on-oil-deal/ar-AAkUPnm
This might be great for oil industries, but it looks like consumers will suffer if the price of oil increases. If OPEC ends up lowering the supply and raising the price, and if this rise in price positively affects American oil industries, I wonder if it could also positively affect Venezuelan oil industries? If price of oil goes up globally, then this could be a tremendous boost to Venezuela's economy.
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