With oil now around $30/bbl, why don't oil producing countries instead buy up the cheap oil contracts by the metric assload then promptly cutting production completely, announcing it to the world and sit back to profits?
I'm not talking about oil producing companies who have to answer to regulatory bodies or governments. Like what's stopping Venezuela or Nigeria as a country from buying up future dated contracts and completely shutting off production? Since they're losing money at $30/bbl, instead of being a producer, why not be a reseller? This seems so obvious that I must be missing something? I get that this is manipulation btw but it's seems to me it wouldn't be any worse than what OPEC does/is doing currently.
Submitted January 13, 2016 at 10:48PM by xyrrus http://ift.tt/1J4oLoJ
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