Analysts at BBH noted that OPEC(Organization of the Petroleum Exporting Countries)
did nothing, and by doing nothing, the current strategy of trying to force out high-cost producers continues.
Key Quotes:
"If anything, OPEC seemed to legitimize the current output above the previous quota. This means the new quota is 31.5 mln barrels a day (1.5 mln bpd increase). This increase does not appear to cover Indonesia re-joining OPEC. The Iranian challenge is even more profound, but OPEC appears to be hoping that a decline in some non-OPEC output and an increase in world demand may make an increase in Iranian (a low-cost producer) supply less disruptive. As we have argued before, this is not proof of OPEC's demise, but rather a common, and arguably, rational strategy of cartels and oligopolies trying to reestablish control of a market. "
