The OPEC agreement on higher oil production will mainly benefit to Saudi Arabia which will gain market share on the oil market. The increase in oil production is global and there is no distribution by country. Saudi Arabia can easily increase its production but Iran will not be able to increase it (sanctions) and Venezuela is in a terrible mayhem and its production is trending downward.
In other words, Saudi Arabia and the US are the winners of this agreement.
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Every morning I record a podcast in French (see here) on a specific topic. The text below is the translation of this morning podcast.
The drop in oil price will have a salutary effect on the economy of the Euro Area.
The lack of commitment between oil producers at the OPEC meeting in Vienna on Thursday the 27th implies a continuous slide in the oil price.
This situation reflects a very peculiar situation on the oil market which is in excess supply. Demand’s dynamics is limited because of the gloomy global growth momentum. At the same time, production is at a high level. Every producer tries to improve its revenues by increasing its own production or by maintaining it at a high level.