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Oil News: OPEC Is "Studying" a Proposal for Emergency Meeting

Mexico Crude Oil Production Chart
Mexico Crude Oil Production Chart

Mexico Crude Oil Production data by YCharts .

That being said, Venezuela and Iran, two of the biggest advocates of a special meeting, are going to need more than Mexico to not only pursued its fellow OPEC members to call a special meeting, but then agree to a output reduction.

Norway stated earlier this year that it has no plans to join OPEC this time around as it did in 1998 and again in 2002. That's partially due to the fact that its oil production these days is roughly 1 million barrels per day less than it was more than a decade ago due to declining production from its legacy North Sea oil fields. In other words, it simply lacks the capacity to make cuts.

Investor takeaway

Because of this, it seems like wishful thinking to believe that an emergency meeting of OPEC is on the horizon. OPEC might be studying a proposal, but without Russia and other larger non-OPEC producers at the table, it will be tough to engineer a coordinated cut as Mexico alone isn't enough to cause it to change course given that market share is the goal.

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The article Oil News: OPEC Is "Studying" a Proposal for Emergency Meeting originally appeared on Fool.com.

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