OPEC members are getting closer to a deal with cutting oil production. Official numbers will be released Friday, but estimates seem to be higher than expected, around a 500,000 barrels per day cut. This would bring daily production down to 1.7 million barrels per day which is a 23% decrease. With the US drilling more and more oil markets are flooded with American oil decreasing prices further. A cut was expected, but it is not clear what magnitude of an effect this will have on prices as many OPEC countries are already under-producing.
With the trade war having no end in sight do you think we should expect more cuts to oil production in order to support prices with the slowing global trade?
https://www.cnbc.com/2019/12/05/opec-december-meeting-opec-production-cuts-in-question.html
With all of these oil cuts, do you think that this will lead to an increase in GDP with the opportunities that this allows for renewable energy? we would have to rely on renewable energy a lot more and that could allow many companies to blow up.
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