Octahedral_cube t1_itcl41k wrote
Reply to comment by Wingsofthepegasus in Iraq, Algeria, Oman, Kuwait and Bahrain Affirm Support for OPEC+ Production Cut by millennium-wisdom
There's no such thing as free lunch. When the govt caps the price, (depending on the contracts) the government will likely pay the difference using money from the govt coffers. This is still taxpayer money, or govt borrowing. Small producers may be forced to sell at lower prices if they can't sell internationally. In times when demand outpaces supply you can choose to sell to someone else, if you have the muscle to do so.
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