| OPEC members have decided to defer until an imminent meeting in Algeria on December 17, a decision to cutback oil output in a move to arrest the fall of crude oil prices that have dropped from approx. US$150 a barrel in July to current levels of US$54. A few key OPEC members assess a fair price for marginal oil producers at around US$75 a barrel, and is expected to take steps to "do what needs to be done" to support prices. If oil prices continue to hover below the US$70 mark, it would greatly affect investments, almost immobilizing them - thus paving the way for future supply crisis. The less-stable economic OPEC members like Nigeria, Venezuela and Iran are worried that consistent low prices will hurt their national budgets. There is also apprehension that some members may not comply with production quotas and will produce above the cuts. |
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