The much-talked about meeting of members of OPEC began in Algeria on Monday, 26th September 2016. The western media is trying to create hype that the meeting may remain inconclusive due to ever prevalent rift between Saudi Arabia and Iran. They are partly right because of the recent hostilities on the occasion of Hajj. However, one can hardly deny that this hostility is not new but spread over centuries.
As I have posted in one of my blogs that western media often lies, the present hype is also a tactical move to malign two of Muslim oil producing countries. Over the months the western media dominated by Zionists have been busy in proving that the world is losing because of low oil price. The fact is that non-oil producing countries are benefiting due to the substantial reduction in energy cost.
Another lie of the western media is that due to low oil prices economies of most of the developed countries are in the shamble. The media is also propagating that since the rich countries are the biggest buyers of goods produced in developing and under-developed countries; poor performance of developed economies is also impacting economies of countries exporting their products to developed countries.
I tend to disagree with this rationalization because developing and under-developed countries are the major producers of commodities. With the decline in the price of oil, commodity prices have also plunged to historic low levels. Therefore, if these countries are benefiting from low oil prices, their exports are also fetching dismal prices.
I also fail to understand the logic of Saudi Arabia that it would cut production, only if Iran cuts production, which is imprudent approach. It is Saudi Arabia which has increased its output and market share of the global market after economic sanctions were made further stringent. Therefore, it is right to say that Saudi Arabia should allow Iran to gain its pre-sanctions output and also bring its production to pre-sanctions level. In other words, Saudi Arabia has thrived by snatching Iranian share.
Moral of the story is that people are hoping against hope, while market manipulators are still minting money by keeping oil prices volatile.