Its Grip on Oil Weakening, OPEC Will Meet on Prices – NYTimes.com.
LONDON — As oil prices continue to plummet, the once-dominant international cartel of producers is losing its sway over the global energy markets.
At its meeting on Thursday in Vienna, the Organization of the Petroleum Exporting Countries, the group of 12 oil producing nations, is under pressure to at least announce modest cuts in an effort to shore up the markets. But any cuts would be modest and would probably do little to prop up oil prices, assuming the countries even stick to an agreement.
OPEC is caught in a swirl of forces that are depressing prices, down more than 25 percent since June to around $80 a barrel. And the cartel’s muscle, namely its control over one-third of the world’s oil production, is not enough to fight them.
Asian and European economies are slowing, which has cut demand. And supply is booming, with shale drilling in the United States adding as much as a million barrels a day this year.…click on the above link to read the rest of the article…
