Extending the Supply Cut
Countries in the oil cartel Opec and several other oil nations began to reduce their production of oil at the beginning of 2017. There was mutual agreement between many nations to drastically cut down on the production of oil. One of the commitments to cut down on this was Russia, this decision was in December 2016. This was the first time in 15 years that a global pact had been struck for this kind of decision. The price of a barrel of oil peaked in January at $57 but, in the past several weeks the price had dropped to $51. The price drop came from countries being unsure about the production and selling of oil. Which some of those were Russia and Saudi Arabia. The US also began to increase production of oil. This was also a cause in the increase of price per barrel. By being unsure they made the price fall. Countries like those need to show discipline in cutting back on production of oil. This is in part of the stock of oil, which right now is too high.
When will we all learn discipline?
I believe we learn discipline only in beneficial situations. With this type of situation it isn’t easy to maintain at ease because of the riches that oil brings. If a country sees the price drop while not producing oil this can be a scare. On the other hand discipline can also be learned by doing what you’re supposed to. If you agree with other countries, you have to keep your word.
To what extent do we value our own countries wealth and well-being?
I believe that we value our own country’s wealth and well being over other’s. This is in part to human nature. We are prone to do what is beneficial to us. This is why I believe we do in our own benefit s it will help us. There are still good people out there I also do believe. Some people in this world still do have good incentives. Which is always nice to see, I do believe there are people and countries like that in the world, who want to see everyone benefit.