OPEC may cut more production if the oil prices fall further

November 12, 2008 by · Leave a Comment
Filed under: Commodities News 

This is good news for the long-term scope of our energy transition.  If we let prices crash as they did in the early 90s, then we will see investment in the alternatives decline right when we need it for the future.  The problem lies when we do hit a hard production peak with demand increasing and the price skyrockets, if we do not have a new infrastructure in place or being built, it will make for a tough transition period.  

News:

OPEC may cut oil supplies again, possibly by the end of this month, if prices continue to fall and the world economy weakens further, OPEC President Chakib Khelil told Reuters on Wednesday.

Khelil said OPEC could take action before its scheduled meeting on December 17 in Algeria if prices continued to slide below current levels of just under $58.

“If the prices continue their decline most probably OPEC will have to take a further decision on a cut in supply,” Khelil, who is also Algerian Energy and Mines Minister, said in an interview in the Algerian capital.

That could happen as early as November 29 at a scheduled meeting of the Organization of the Arab Petroleum Exporting Countries in Cairo, he said.

Source: Reuters

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