OPEC Likely to Cut Oil Supplies
With the economic recession affecting the globe, OPEC’s Secretary-General Abdullah El-Badri announced today that the organization is likely to cut its daily production of oil by approximately 1.5 million barrels in an effort to restore oil prices to approximately $90 per barrel. Iranian state TV reported that such an action would be likely to occur in December, a move that the Islamic nation would support considering the substantial portion of its economy that is dependent on oil revenues. The next meeting of OPEC is scheduled to occur on December 17 in Algeria, at which it would be decided if the production cuts are to go into effect. Middle Eastern countries and especially Iran have been hit hard by recessions that have sent oil prices plunging to below $60 a barrel which inevitably weakens their economies. The action would have global implications, raising gasoline prices in America and abroad.
Steven Craig
