OPEC Plans Emergency Meeting Over Plunging Oil Prices

Old position: Global warming skeptic. New position: Global warming enthusiast.

The OPEC cartel of leading oil producing nations is considering emergency measures to prop up prices after the cost of a barrel of crude fell to its lowest in 18 months.

Oil ministers are today expected to continue yesterday's frenzied round of telephone calls after the price fell below $54 a barrel, triggered by mild weather, particularly in the US.

The oil markets initially shrugged off an escalation of an oil pipeline dispute between Russia and Belarus, and some OPEC members fear that the price will fall further unless the organisation agrees to cut production.

But with Russia and Belarus failing to reach agreement, early losses were pared with Brent recovering to close 42 cents lower at $55.18. A long-term fall in crude prices could have widespread consequences, from damaging Gulf economies to undermining the business models of oil exploration companies.

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With no clear signal that OPEC will agree a strategy soon, there was an expectation yesterday that some speculators would begin testing the $50 a barrel threshold.

The buffoonish O'Reilly, I take it, will suddenly embrace the villainous speculators as heroes.

posted by Ace at 03:01 PM

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