rssOPEC Cuts Oil Production
Friday, October 24, 2008 at 11:00 am
- 4 Comments
Since oil prices plummeted to below $70 a barrel, the Organization of Petroleum Exporting Countries has been talking about cutting oil production to respond to a demand that just keeps dropping. Today, OPEC is doing it. It announced a plan to cut oil output by 1.5 million barrels.
With the global economy in shambles, oil demand and consumption continues to fall. It’s been on the decline since January 2008 and sharp spikes in oil prices this summer — up to $147 a barrel — certainly didn’t help.
One of the uncertain parts of this equation is the variable of what consumers will do next. How will businesses and individuals respond to oil as low as $63 a barrel and gas prices as low as $2.82?
I’ll have some of these answers in a piece later today.
4 Comments
Comment posted October 24, 2008 @ 2:34 pm
I cant beleive OPEC! It is screwing the consumer every day that we have to pay over five dollars a gallon of heading oil! http://www.northernvox.com
Comment posted October 24, 2008 @ 2:35 pm
I cant believe we are going to allow the companies to get away with screwing the consumer. This will continue the more than five dollars a barrol for heating oil!
Comment posted November 13, 2008 @ 8:53 am
OPEC will not be satisfied until they have managed to become the richest countries in the world. Since 2004 their actions have been nothing short of econimic terrorism.
In 2004 when oil prices doubled their response was to cut production by 1 million barrels per day.
This unchecked greed will seriously impair the world economy and make it more difficult for the world to snap out of it's current econimic crisis.
Comment posted November 13, 2008 @ 4:53 pm
OPEC will not be satisfied until they have managed to become the richest countries in the world. Since 2004 their actions have been nothing short of econimic terrorism.
In 2004 when oil prices doubled their response was to cut production by 1 million barrels per day.
This unchecked greed will seriously impair the world economy and make it more difficult for the world to snap out of it's current econimic crisis.
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