It might thrill drivers, but countries relying on oil exports to finance their economies
aren't happy about current price levels.
For the last three months oil has been heading steadily downhill.
At the start of October a barrel of North Sea Brent Crude stood at a respectable 86
dollars.
By the end of November it was struggling at 57 dollars a barrel at times, though it's
stabilized for now at 60.
That's causing oil producers a lot of financial problems.
So much so that the Organisation of Petroleum Exporting Countries has put production cuts
high on the agenda of its latest Vienna meeting.
"What we need is a fair price.
And 50 is not a fair price."
"What is a fair price for you?
"For me?
It's a bit higher than 50."
"How much?"
"The rest is secret."
Economics 1-0-1: if output and hence supply falls - prices rise.
The US is by far the world's largest oil producer at 14 percent of output.
Russia is the second largest.
Non-OPEC member Canada is way behind.
Uniting 15 countries, OPEC is responsible for 42 percent of global oil production, giving
it the main sway over pricing.
The organisation's most important single member is Saudi Arabia, which alone pumps 13 percent
of the world's crude supply.
But not everyone's happy about the idea of falling supply and rising expense.
US President Trump has no interest in high oil prices.
He appealed to OPEC on Twitter not to cut output.
At the same time though Non-OPEC member Russia said is is ready to implement output cuts
-- as has OPEC heavyweight Saudi Arabia.
The talk in Vienna
is of
a one
percent
cut in production.