OPEC Will Boost Oil Output—But Don't Expect Lower Prices at the Pump

Jul 19, 2021
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Also published in The Hill
About the Authors
Simon Henderson
Simon Henderson

Simon Henderson is the Baker Senior Fellow and director of the Bernstein Program on Gulf and Energy Policy at The Washington Institute, specializing in energy matters and the conservative Arab states of the Persian Gulf.

Articles & Testimony

Although more supplies will be coming to market, the economic impact of this decision will depend on issues of timing, royal rapprochement, and new COVID surges.

Why is analysis of the oil market often so full of cliches? Answer: Because it saves having to inflict on the general reader an arcane discussion about supply and demand. The latest breakthrough in the arguments about production quotas in OPEC+—the grouping of Saudi-led OPEC plus Russia and other oil exporters—can be summed up in the expression, “The Saudis blinked.” Riyadh had not wanted to allow the United Arab Emirates to condition its acceptance on a raised quota. Alternatively, for those with a longer-term perspective for looking ahead or years of previous experience, “The can was kicked down the road” may be more apt...

Read the full article on the Hill website.

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