Oil Prices Tumble on Falling Demand
For much of the year, record prices for oil have made oil-producing nations rich. Now these nations are trying to cut production to support collapsing prices.
Last week, the Organization of Petroleum Exporting Countries met in Algiers. Members agreed to a record production cut of more than two million barrels a day, or about five percent of world output. OPEC's president said the group may call an emergency meeting in March if prices continue to fall.
Less than six months ago, oil traded at a record one hundred forty-seven dollars a barrel. Governments and oil companies in Russia, Brazil and Saudi Arabia spent billions of dollars to develop new oil fields. Now, oil is trading for less than forty dollars a barrel—down over seventy percent.
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International Energy Agency reports the rate of decline in oil production is now running at nearly twice the pace as calculated just two years ago.
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