Most OPEC leaders said they plan to keep oil production unchanged in the new year. Demand may be off because of slowing economies around the world. That means crude prices may have a ways to drop - a net positive for businesses and consumers.
While OPEC's own forecasts show that it's pumping more than consumers need, Saudi Arabia, Iraq, Iran, the United Arab Emirates, Angola, Ecuador and Libya have indicated that supply and demand are approximately in balance, suggesting that the group will stick to its official output target of 30 million barrels a day. Brent crude is heading for its highest-ever annual price, averaging $111.78 a barrel so far this year in London.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Oil & Gas