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OPEC did not account for the United States to increase its production again. After oil prices fell to a low where it was unproductive to produce oil in the US, OPEC felt that enough US producers had left the game and would not return. The resumption of oil production in the US has kept prices lower than the expected 60 per barrel target price Iraq sought and still seeks. Unfortunately, having not met this price, Iraq, countering, tries to produce more oil which in turn causes the price per barrel lower. Less is more and until Iraq figures this supply and demand issue out, they will continue harm themselves by producing more and earning less. It is a vicious cycle that takes a delicate balancing act to get right. Oil pundits have stated that oil will not reach 60 per barrel in 2017 but will hold steady around 54 per barrel, however the 54 target will not hold if oil is produced over the cut levels. OPEC either needs to cut production again or let the price per barrel fall to a low in which undercuts the US oil producers. If the latter is done, this benefits no one because when prices rise once more the US producers will enter the game again. This could see-saw for a couple more years until things level out. Meaning that it will be until well after 2020 that oil reaches 60 per barrel.
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