OPEC oil ministers are meeting in Vienna -with a decision to make.Faced with a worldwide fall in demand and an oil glut, they have to decide whether to cut production for the fourth time in six months – or face a slump in the price per barrel. OPEC members already agreed last September to reduce production by 4 million barrels a day – but there has only been 80 per cent compliance. They could fully comply and cut some more but there is then a danger of destabilising the fragile global economy and pushing down the price of crude even further. At the moment oil is around 40 US dollars a barrel -put simply OPEC members therefore have to decide what the market needs and make appropriate cuts. Big players like Saudi Arabia could decide unilaterally on what steps to take. Major producers like Russia, a non-OPEC member could also influence the final outcome. OPEC is likely to take a cautious approach. Non of the members want to see a price crash similar to that of the late 1990s when oil fell to 10 US dollars a barrel.
OPEC meet to decide on output cuts.