OPEC Talks Push Oil Prices Higher, 10/20/08

Fears of a world-wide economic crisis have pushed oil prices down over 50% since they hit their all time highs in July of 2008. Many OPEC member have stated that they would like to see production cut in order to stabilize oil prices. For example: Iran has the second largest oil reserves in the world, and for every dollar the price of oil per barrel falls, Iran loses about a billion dollarsof oil revenue. Also bearing in mind that OPEC comprises 13 of the world’s largest oil producers, Algeria Iran and Venezuela have publicly stated that they would like to experience an output cut so to help rise prizes. Algeria’s energy minister hoped that the advancement of the OPEC meeting by three weeks should announce the “substantial” cuts. Most analysts are in agreement that this cut would be done by cutting production of about one million barrels a day. The results of this cut down on oil production could result in higher prices and more potential harm to the economic slow down.

See the article here. -S