If the global economy slides into recession expectations are that the demand for oil will drop sharply. A much larger than expected rise in crude and gasoline inventories in the US last week indicated that demand is slowing as a result of the financial turmoil affecting the wider economy.
The price of oil has dropped about 41 percent from its peak of 147 dollars a barrel in July. Earlier this week it reached its lowest level in ten months of 87 dollars a barrel.
Venezuelan President Hugo Chavez has said OPEC is calling for an extraordinary meeting to discuss the impact of the financial crisis. Other sources say the oil cartel will hold an emergency meeting in mid-November in Vienna to review oil market conditions. Several OPEC members have floated the idea of a cut in output. One oil broker believes much will ride on the Saudis and whether they will agree to restrain their massive production.