Now that the US is an oil producer, and we've seen the behavior of the populace (lost jobs/80% of oil savings spent vs saved) since the price of oil fell - what are the supposed broader economic effects in the US of $70-80/barrel? http://www.bloomberg.com/news/artic...pec-to-cut-oil-output-to-lift-prices-to-70-80
Clearly if prices rose to $70-$80 then U.S. production would increase, rig count would increase, employment in production would increase, capital spending on production would increase and ripple through the supply chain. However, why are you focusing on what the Iranian Oil OPEC minister is saying to bloomberg? Just last week the Saudis cut prices and said they would not reduce production as they try to capture Eastern EU and General EU markets from Russia and defend its Asian Market shares. They want to hurt Russia in response to activity in Syria and cooperation with Iran and they want to lock up market share before sanctions on Iran our lifted to the degree that Iran can ramp up production. The price doesn't go up until the Saudis say so and oil price is at the hart of the geopolitics in the Middle East and Central Asia; low price is a weapon against Russia and Iran.