OPEC Slashes Production; Crude Continues to Tumble

opec slashes production crude continues to tumble

The AP reports on the ongoing oil price collapse. “OPEC said at an emergency meeting Friday that it will slash oil production by 1.5 million barrels to stem the ‘dramatic collapse’ of oil prices, but crude prices plunged 7 percent anyway as financial markets spiraled downward across the globe.” In the face of OPEC’s proclamation, oil opening below $64/barrel this morning; down over half from the $140 highs of just a few short months ago. Even with the growth in China, India and the rest of Asia, the US still consumes a fourth of the world’s oil burn, and “U.S. demand is down nearly 10 percent during the past four weeks year on year.” OPEC hopes to talk Russia into playing along with a supply squeeze, but Russia has problems of it’s own and typically goes her own way on these matters. Other oil producers are singing the blues (’cause they never thought they’d lose). “Iran, Venezuela and other OPEC members having suggested that for them, selling oil under $80 was a loss-maker, and Iraq on Thursday said it would have to rethink next year’s national budget if prices remain under that level.” OPEC’s El-Badri is unsympathetic: “OPEC cannot bail out the problems of others.” Words to live by.

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  • Indi500fan Indi500fan on Oct 24, 2008

    Gas is 2.19 today here in Indy The guy on CNBC says in the 1.XX per gal range by next month. Time to lay off the Prius proles and fire up the Tundra/Sequoia line.

  • AJ AJ on Oct 24, 2008

    SWEET! I'm taking my gas lovin' Jeep for a long drive this weekend. Plus to celebrate, screw tread lightly... I'm looking for flowers and small animals to drive over. Just kidding you oil haters. ;)

  • Usta Bee Usta Bee on Oct 24, 2008

    U.S. consumption is down 10%. Yeah, people save themselves alot of gas each week by not having jobs to drive to anymore. At least unemployment is helping to keep gas prices low !.

  • Armadamaster Armadamaster on Oct 25, 2008

    Who'd have thunk it....gasoline prices really are immune to the laws of supply and demand...duh... Unless demand fell 90% considering about a month back I was paying $3.89 and got it for $2.11 today and falling...