“OPEC’s oil production bobs up and down. In general, its production is lower when oil prices are low, and higher when oil prices are high. (This shouldn’t be a surprise.) Recently, its production has been lower in response to low prices. Effective January 1, 2020, OPEC plans to reduce its production by another 500,000 barrels per day.”
By Gail Tverberg - Jan 11, 2020, 6:00 PM CST Oilprice.com
Based on this passage what effects does oil have on the movement of products?
OPEC disregards changes in demand of oil and gas, therefore, consistently produces the same amount year to year.
OPEC sets production levels to meet global demand and can influence the price of oil and gas by increasing or decreasing production.
OPEC responds to global demands for oil and gas by increasing production to meet the needs of all countries.
OPEC wants to increase the number of members its organization to increase its control of oil prices.
