The Washington Independent » barrel http://washingtonindependent.com National News in Context Thu, 10 May 2012 20:13:22 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 OPEC Cuts Oil Production http://washingtonindependent.com/14718/opec-cuts-oil-production http://washingtonindependent.com/14718/opec-cuts-oil-production#comments Fri, 24 Oct 2008 15:00:36 +0000 Suemedha Sood http://washingtonindependent.com/?p=14718 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. More...

]]> 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.

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