The Oil Oil Exporting Organization (OPEC) has agreed to extend production cuts until next March and endorse a policy aimed at supporting oil prices with increasing US production, which has become the world's leading producer in Russia and Saudi Arabia. The agreement is awaiting approval from non-OPEC Allies; However, Iraq's oil minister said he did not foresee any complications.
But the founder Todd Horwitz, Bubba Trading, is a little skeptical. OPEC "never holds anything [s]," he told Yahoo Finance. "It's the problem with the entire OPEC world that they all support each other as it goes on."
The United States has produced 12.1 million barrels of oil per day, according to recent US data. Saudi Arabia, which has 2.3 million barrels of spare capacity, has produced 9.7 million barrels a day. As the US continues to produce more oil, Horwitz believes OPEC can "no longer hold US hostages, which is what they used to do, as oil was cheap. They [OPEC] are a worthless organization."  A pumphane operates at a well site leased by the Devon Energy Production Company near Guthrie, Oklahoma on September 15, 2015. REUTERS / Nick Oxford ” class=”JsEnabled_Op(0) JsEnabled_Bg(n) Trsdu(.42s) Bgr(nr) Bgz(cv) StretchedBox W(100%) H(100%) ie-7_H(a)” itemprop=”url” style=”background-image:url(https://s.yimg.com/ny/api/res/1.2/aDu7Pb1v6nAeGaP69gp1Mg–~A/YXBwaWQ9aGlnaGxhbmRlcjtzbT0xO3c9ODAw/https://media-mbst-pub-ue1.s3.amazonaws.com/creatr-images/2019-07/c9d833d0-9cf9-11e9-9fce-5cf6a70df745);” src=”https://s.yimg.com/g/images/spaceball.gif” data-reactid=”22″/>
A pumping jack operates on a well site rented by the Devon Energy Production Company near Guthrie, Oklahoma on September 15, 2015. REUTERS / Nick Oxford