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Economic Research

OPEC and the Oil Market

On September 9, OPEC, the cartel of oil exporters, meets for the first time since the spring. The mood will likely be congratulatory given that OPEC cuts, along with hefty monetary and fiscal stimulus, contributed to an increase and stabilization of the oil price.

Although no change to production quotas is likely next week, OPEC countries have been voting with their production in the last few months. Oil production by the 11 countries technically bound by OPEC quotas—Iraq is immune—has been trending up since March. Overall, compliance with quotas has been relatively good in this[...]

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