OPEC announced a freeze in oil production to get prices back up. A Bloomberg reporter asks about the trust problem. More specifically for this blog, Venezuela is the worst off as a result of dropping oil prices and needs revenue badly.
There is a strong incentive for PDVSA not to freeze production and instead to reap the benefits of higher prices. Someone more knowledgeable than me would need to explain how production is overseen.
So until OPEC members are all on an equal economic footing, don't expect "trust" to be a word that has much meaning when new production agreements are unveiled.
There is a strong incentive for PDVSA not to freeze production and instead to reap the benefits of higher prices. Someone more knowledgeable than me would need to explain how production is overseen.
