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Is it reasonable for a high-yield manufacturer to reduce production while the low-efficiency producer continues to produce? That`s bad logic. What will happen to my market share if I depreciate? The price will go up and the Russians, the Brazilians, the American shale oil producers will take my share… We want to tell the world that high-yield producing countries are the countries that gain market share. This is the operational principle in all capitalist countries… One thing is certain: current prices (about $60/bbl) do not support all producers. “Despite the economic and financial circumstances facing Iraq, the country maintains the agreement,” OPEC spokesman Assem Jihad, a spokesman for Iraq`s oil ministry, said on Saturday. In 1982, to combat declining oil sales revenues, Saudi Arabia pushed OPEC to introduce controlled domestic production quotas to limit production and push up prices. When other OPEC countries failed to comply, Saudi Arabia first reduced its own production from 10 million barrels per day in 1979-81 to only one-third of that level in 1985. When this proved ineffective, Saudi Arabia reversed course and flooded the market with cheap oil, causing prices to fall below $10/bbl and making more expensive producers unprofitable. [54] [56]:127-128,136-137 Faced with growing economic distress (which ultimately contributed to the collapse of the Soviet bloc in 1989) [57], “liberated” oil exporters began, which had not previously complied with OPEC agreements, and finally limited production to support prices, on the basis of carefully negotiated national quotas that, since 1986, had been aimed at offsetting oil and economic criteria. [54] [59] (Within their state-controlled territories, the national governments of OPEC members are able to impose production restrictions on public and private oil companies). [60] In general, oil prices rise when OPEC production targets are reduced.

[61] On 10 September 2008, when oil prices were still close to $100/bbl, a production dispute erupted when the Saudis reportedly left a round of negotiations in which rival members voted to cut OPEC production. Although the Saudi delegates officially approved the new quotas, they said anonymously that they would not respect them.