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Originally Posted by BAIDS
im no expert on this but low oil prices arent necessarily terrible for the sheiks because it heavily disincentivises investment in oil infrastructure around the world. the big international oil companies like bp and shell are cancelling investment projects left right & centre, which gives the sheiks greater control long term.
this is why opec keeps refusing to cut production despite slumping prices. if oil prices spike then a niagra of US and russian capital flows into oil productive capacity
They're going to do well to make it back - the estimates are that what they have done has cost OPEC $200bn a year. Also, OPEC aren't as influential as they once were, and it can be argued that it never had the characteristics of a successful cartel in the first place.
Depending on how long the long run is, the world is very likely to move towards alternative energy sources, which is hardly great news for OPEC.