July 16, 2021 | OPEC Faces an Existential Threat
Hilliard MacBeth
Author of "When the Bubble Bursts: Surviving the Canadian Real Estate Crash"
OPEC failed again to reach agreement among its members and others to increase the supply of crude oil, a failure that risks an even greater surge in the price of oil which could trigger a worldwide recession.
Five of the last six recessions have been preceded by a spike in the price of crude oil. The one exception was the recession in 2020 caused by the pandemic of SARS-CoV-2.
Will OPEC get its act together in time?
The price of crude oil does not have the impact that it had in the 1970s when OPEC had the power to bring entire economies to the brink of disaster with price hikes caused by supply cuts.