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So far it does appear that this is a price war intended to drive out some of the competition. It could be painful for the high-cost producer countries and that includes the US.
It further suggests that the 1976 backroom Doha agreement between the US and S.A. may have broken down, though we have no way of knowing for sure.
Alternatively, it's possible that the US agreed to the price cuts in order to hurt Russia, Iran, and Venezuela, but if so it strikes me as a reckless decision.
1 comment:
Can't argue with anything Auerback said.
So far it does appear that this is a price war intended to drive out some of the competition. It could be painful for the high-cost producer countries and that includes the US.
It further suggests that the 1976 backroom Doha agreement between the US and S.A. may have broken down, though we have no way of knowing for sure.
Alternatively, it's possible that the US agreed to the price cuts in order to hurt Russia, Iran, and Venezuela, but if so it strikes me as a reckless decision.
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