Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Outlook: Opec's gain is our loss

Monday 23 March 1998 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

SO you thought OPEC was dead. Judging by last weekend's agreement to reduce oil output, there's life in the old cartel yet; OPEC's ability to manipulate the market to the advantage of producers seems as potent as ever. Indeed, this time round, the world's major oil exporters have surpassed themselves by roping in non OPEC countries too in their bid to remove the oversupply of oil. As a result, this latest initiative seems to stand a better chance of doing the trick than anything else tried in recent times.

Never forget, however, that what's good news for the oil companies and the big oil producing nations (of which Britain is still one), is generally bad news for the rest of us. The deflating oil price of the last six months has had a reflationary effect on the world economy at a time when the Asian crisis has been pulling violently in the other direction. These two influences have to some extent been cancelling each other out. If last weekend's agreement succeeds in limiting supply and raising prices, then the effect of the Asian collapse on the world economy may be that much more violent.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in