When the Organization of Petroleum Exporting Countries (OPEC) meets in November to decide how to approach draining the international oil glut, the cartel will consider “all options,” the Wall Street Journal reports.
OPEC has tried to deal with the ongoing glut through production cuts agreed to by member and nonmember countries. The cuts haven’t worked, however, and the organization has had consistent trouble enforcing its agreement. (RELATED: Ecuador Breaks, Says It Can’t Follow OPEC Agreement Anymore)
Oil production within OPEC has risen for months in a row in 2017 when the cuts were instated at the start of the year, according to CNBC.
OPEC initiated the cuts to try to raise the price of oil by restricting supply. Despite the attempt, oil prices have fallen 5 percent since the beginning of 2017, according to the WSJ.
Although the strategy hasn’t met success, Angola’s petroleum minister Jose B. de Vasconcelos became the first representative of an OPEC country to publicly support the policy. Angola depends on oil for half of its total government income, making low oil prices devastating for its federal spending priorities.
“It is better to cut the level of production and make the price of oil rise instead of producing at the max level and selling at low prices,” Vasconcelos said, according to the WSJ.
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