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Home > Journal

How to Restore Trust Among Oil Exporting Countries and Manage a Gradual Price Recovery

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N. Ait-Laoussine
Ait-Laoussine, Nordine
J. Gault
Gault, John

Article from: OGEL 4 (2016), in Economic and Commercial Context for Oil, Gas and Energy Law

Introduction

March 2016 - Current discussions among oil exporting countries based on a proposal to freeze output at January levels, as presently formulated, will neither secure a lasting recovery of oil prices nor build durable trust.

Such a freeze - even if most OPEC members were to adhere - cannot secure a lasting recovery in oil prices because it does not squarely deal with the fundamental problem of excess supply. While the market has reacted to the prospect of a freeze with a temporary price bump to over $40/bl for Brent, the impact will not last.

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Suggested Citation

N. Ait-Laoussine; J. Gault; "How to Restore Trust Among Oil Exporting Countries and Manage a Gradual Price Recovery"
OGEL 4 (2016), www.ogel.org

URL: www.ogel.org/article.asp?key=3647

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