Did you just turn 18?
So if they cut oil production, next comes a worldwide recession, ...
Is this the first time you are hearing of a cut in oil production? OPEC cuts production all the time as a strategy to stabilize oil prices whenever they fall below a threshold. The OPEC club made up of 15 countries are
always careful not to upset markets. As some member here already pointed out, 2M barrels is only 2% world production. It won't hurt the oil producing exports. That reduction in production is more than made up when the 98% costs
more. The 15 nations that are a member of OPEC own over 81.5% of the world's oil reserves. They won't shoot themselves in the foot.
See there is a difference, if a resource isn't available on the market it won't matter even if you have the money. On the other hand, if it is albeit in reduced quantities, and it is a necessity, and you have cash at hand, you will pay more for it. Economics 101.
Don't they depend a lot on exports? I don't get it.
When I was in primary school, my geography teacher always reminded us that fossil fuels were not sustainable and one day will run out. Oil producing countries know these and have for years embarked on projects to diversify exports so as we speak and with an eye on the future Oil countries are weaning off dependence on oil and doing other things for a livelihood other than just oil. If you "don't get it" go ask for a refund from your primary school
Europe will freeze but that will only last 4 mos.....
Of greatest concern is keeping warm in Winter. Europe/America uses Natural gas for that
not oil. The main exporter of Natural gas in EurAsia is Russia. They have weaponized it against Europe and are hell bent on cutting off supply because of the matter in Ukraine. Europe is scrambling to see where they can get alternative supply before Winter sets in. Despite best efforts, at the last check Europe still need the 9% from Russia.
Wont China et al lose the most? .... Developing world will suffer the most.
True Developing countries get affected most because a more costly product eats into their meagre foreign exchange reserve unlike China who will take the higher prices in stride coz their economy can absorb the small hike. But then again as OPEC points out, ask developing Governments to look into the high taxes and partner with OPEC in developing renewable sources.
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