The simplest solution to prevent declines in the price of any commodity is to have the producers of said commodity agree to cut production. Such a move would lead, by extension, to reduced market saturation and a rise in demand for, and price of, the commodity in question.

Yet, despite the simplicity of this solution and its prevalence in all types of markets, resorting to it may lead to repercussions that are greatly more complex and dangerous when the targeted commodity is strategic in nature — as is the case with petroleum.

In that regard, Egypt may be viewed as an important example of the dangers engendered by such a strategy, whereby tension and concern currently reign supreme throughout the Egyptian economy. This is in light of the continuous increase in the price of petroleum, which has risen to record highs in the period extending from July 2015 to Dec. 13, 2016, topping $57.89 per barrel of Brent crude, amid expectations that it will continue to rise to $60 per barrel.

The rise in petroleum prices was the result of two rounds of negotiations and agreements to reduce production. The first move came subsequent to the meeting held by OPEC members on Nov. 30 in Vienna, when they decided to collectively reduce production by 1.2 million barrels per day starting in January 2017, bringing total production to 32.5 million barrels per day.