I thought they were targeting $68 a barrel, because that’s the price they think will cause the frackers to back off.
OPEC production is down 10% from its peak in April 2012, when the price was around $100. My guess is prices are down because of increases in non-OPEC production that finally glutted the market. At current prices, all producers have to pump more just to take in the same income. I would expect the glut to last for several years, at least. Oil prices had a great ramp from the early 70’s until the mid 80’s, peaking at ~$40 around 1979. Then they dove back down to $20 from the mid-1980’s until the late 1990’s, helping to super-charge the Clinton boom. The reason for the dive was the same as for every other commodity, over-investment in a sure thing, leading to a supply glut.
$60 oil will put Putey back in his box. :-)
The problem with that theory is that as soon as the prices rise enough to make fracking profitable again, the fracking starts again. Same way with high cost oil wells. When the price of oil is low, shut them down. When the cost goes back up, start them up again.