What's going on?

An important group of oil-producing countries met on Thursday and� basically did nothing! While some less influential countries, like Venezuela, would really like the oil price to go up, the result of the meeting (arguably) showed how happy many of the world�s biggest exporters of oil, like Saudi Arabia, are with the current state of the oil market.

What does this mean?

The Organization of Petroleum Exporting Countries (OPEC) is a group of oil-producing countries, led predominantly by Middle Eastern states such as Saudi Arabia, that have historically cooperated in order to exert control over the price of oil. After the oil price hit its lowest level in 13 years this February (about $26 per barrel of oil), it has rebounded to nearly $50 due partly to the possibility that OPEC members would agree to cap their production (i.e. limit supply). That hasn�t materialized, but the price has recovered.

Why should I care?

For the market: This might be a goldilocks level for major oil producers like Saudi Arabia. At $50/barrel, it�s unprofitable for many US producers to continue to drill for oil. That�s why oil production in US has declined over the past year or so. Saudi Arabia (and others) have a lower cost of production and, therefore, have been increasing their share of the market. In short (and broadly speaking), American producers are getting squeezed out.

For you personally: The squeeze has really hurt oil-producing regions. From Oklahoma to Norway to Scotland to Alberta, countries and regions have struggled as the low oil price has led to production cuts and job losses. What (some of) OPEC�s members effectively signalled on Thursday is that they�re happy with oil at this price � and, without a price rebound, there likely won�t be many jobs returning to those regions where the cost of production is relatively high.