Speaking to Benzinga, Economist and Peak Prosperity Co-Founder Chris Martenson said that “below board” discussion on why Saudi Arabia and other members of OPEC don’t want to cut oil production lead to “non-economic” reasons.
“Just look at the numbers,” Martenson said.
Martenson explained that OPEC exports 30 million barrels a day, and the world is over supplied by roughly a million barrels a day.
“So you cut a million and a half barrels. Quick math: 30 million barrels at $50 gets you a billion dollars less than 28.5 million barrels at $90, which is probably where the price would go back to if you just cut 1.5 million barrels,” he said.
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