OPEC Meeting Adjourns, Saudi Arabia Supports Lower Oil Prices
The members of the Organization of the Petroleum Exporting Countries (OPEC) met on Tuesday in Vienna to discuss the lowering prices of oil and the need to cut oil production in order to curb the oversupply that has been driving oil prices down.
Oil prices peaked over the summer and have steadily been declining, reaching a price of $103.26 a barrel in New York Tuesday, the lowest it has been since April. This level of approximately $100 a barrel was a large point of interest to the OPEC meeting agenda. An argument over the need to lower oil production to stop the price drop set Saudi Arabia against the group of Iran, Venezuela, Libya and Algeria, who are supporting keeping the prices above the $100 a barrel mark.
Saudi Arabia, pushing for stability projected at $80 a barrel, simply believes that prices are too high and that a steady equilibrium can be maintained at a lower level. The opposing side, backed mainly by Venezuela and Iran, is pushing for a balance to be kept above $100 a barrel, providing both countries with more economic stability in the oil industry.
While Saudi Arabia contested the cut in oil production, the decision was finally agreed late in the evening. It is expected that Saudi Arabia will slowly cut their oil production, but they will most likely not meet the expectations of the OPEC agreement.
Holly MacGillivray
