OPEC logo is pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria September 28, 2016. REUTERS/Ramzi Boudina/File Photo
OilPrice.com: OPEC+ Is On The Brink Of A Crisis
The OPEC+ member countries are on the brink of a financial crisis if the latest assessments of the International Monetary Fund (IMF) are accurate.
The IMF has presented a very bleak outlook for an economic recovery in the Middle East and Central Asia, predicting a 4.1% contraction for the region.
The main driving factor behind this bearish outlook is the IMF’s forecast that oil prices will remain in the $40 to $50 range in 2021. An extension of the current low oil price environment for another year would badly hurt oil and gas exporting countries, which includes all of the OPEC+ members.
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WNU Editor: OPEC got a break today .... Oil rises on U.S. stimulus hopes, but Covid-19 cases keep gains in check (CNBC/Reuters). But the long term prospects do not look good. With demand being crippled because of the Covid-19 pandemic, global economy contracting, and countries returning to oil markets (i.e. Libya), no one expects oil prices to rise anytime soon. For OPEC nations that means smaller revenues, contracting economies, and the social and political problems that accompany such drops in revenues.
