Iraq Plans to Flood Market with Oil

An editorial in Market Watch comments that the recent plan by Iraq to flood the market with oil to "bring U.S. shale producers to their knees" is a poor idea. Iraq has announced that they will boost production by 800,000 barrels a day, which is against their own interest. Iraq would have to borrow money it does not have to meet that goal. The editorial notes, "no OPEC producer has done much to undo their chief cost disadvantage—political instability and lack of individual freedom." It may sound abstract, but buying-off oppressed populations is expensive. On the U.S. side of the market, U.S. producers have proved they can continue to operate—with increased efficiency and a lower cost to produce.