Anonymous asked in Politics & GovernmentCivic Participation · 8 months ago

What does it mean for the future of oil when the producers have to cut output to raise the price of oil?

2 Answers

  • Foofa
    Lv 7
    8 months ago

    Oil isn't endless and with every new advance in non-fossil energy OPEC sees its future dim further. This is why the smart oil producing nations are trying to diversity as quickly as possible... But is also why countries not doing that are failing economically.

  • GTB
    Lv 7
    8 months ago

    The "law of supply and demand", the fundamental economics law is alive and well. Oil producers are seeing lower prices and they wish to cut back supply to create a shortage and raise the price. This is what it means. It is pure and simple price control by supply limiting or "price fixing".

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