The OPEC meeting in Vienna cut production by 1.5 million barrels a day, and guess what?
OIL STILL WENT DOWN!
This must be jacking the OPEC members to no end. They cut production and oil still goes down to its lowest levels in almost 2 years. Whether we will ever see it in the gas prices is another issue, but it shows that even OPEC is not immune to LOUC.
They quickly left Vienna with their tails between their legs and vowed that they would revisit the question in 20 days at their regularly scheduled meeting. They are truly on the horns of a dilemma:
If they cut production even further, they risk a back lash from the consuming nations as their economies dwindling and turn into recessionary activities.
Also, if they don't cut production, the downhill slide on the price of oil will continue.
What a problem for their advisors, eh? However, you can't help laughing a bit at Chavez (Venezuela) and Putin (Russia) since their power is directly upheld by the price of oil. I am sure this weekend is not going to be very enjoyable for them.
Their revenue has been but almost by 2/3s!
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