Opec energy ministers have decided to leave oil production quotas unchanged after talks in the Egyptian capital following falls in the price of oil. Opec President Chakib Khelil said any such decision would be made at a meeting in Algeria next month.
The price of a barrel of oil has tumbled to below $55 after peaking at a record $147 in mid-July. Opec members have lost billions of dollars as demand has dropped in the face of the global economic downturn.
Opec member Venezuela favours a cut in output of a million barrels a day to try to boost prices. But several Opec ministers had already dampened expectations that a cut in production would be announced this weekend.
Nice one; they will lose tens of millions as a result of this decision, but they have decided to let the price run it's course for now, to see if the cuts last month, filter through before 2009. So despite analyst's and media saying that the cartel wanted prices at $100 per barrel, and will hold the west to ransom, they are in fact helping the average consumer at present.
It's a real shame our government could'nt do the same thing, you know, HELP people in times of need (no chance of a tax cut when the fuel prices were soaring). I see the basket price is currently at $47.00, very good News
for Christmas at least. Although, I wonder how long it will last; I doubt it will rocket up within the next 3 - 4 months at least. Next summer may be painful, and we're guaranteed to have a VERY heavy tax increase to be announced for late 2009/early 2010 to make up the billion's that the government is currently wasting.BBC News Report