Lower Oil Prices with Brazil in OPEC
Peter Z. Grossman, Butler University, Indianapolis | March 7, 2008
The fear of several analysts that oil prices will rise if Brazil joins OPEC is not justified. ++ This would only happen if all OPEC states cut production by more than the amount Brazil would produce. ++ This is unlikely as OPEC states' wealth mainly depends on oil revenues. ++ Examples are Venezuela and Saudi-Arabia. ++ History shows that lower prices are the more probable consequence.
