Steve Allen, professor of economics, joined WPTF radio to discuss the potential impact of upcoming oil production cutbacks announced by the Organization of the Petroleum Exporting Countries (OPEC). While there hasn’t been a significant change in the global price of oil yet, Allen looks to the demand for oil for upcoming holidays and a possible recession in 2023 to make price predictions.
“If you look at the oil futures market, there has not been a significant change in the global price of oil,” said Allen. “You have to keep in mind something we talk about in basic economic classes, there are two sides to price determination. There’s supply, and OPEC claims they are cutting back supply…and then there’s demand.”
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