OPEC Decision Likely to Crash U.S. Fracking Industry » EcoWatch.
At its meeting today in Vienna, Austria, the 12 member countries of the Organization of Petroleum Exporting Countries (OPEC) voted to keep their output target unchanged despite a 30 percent slump in the oil price since June, due primarily to the explosive growth in fracking in the U.S. as well as decreasing global demand. While Venezuela made a case for an output reduction, Saudi Arabia, the world’s leading oil producer and exporter, pressured to keep it the same.
The price immediately declined in response, dropping below $72 a barrel, a price last seen in August 2010.
“There’s a price decline. That does not mean that we should really rush and do something,” OPEC secretary general Abdallah Salem el-Badri told the BBC. “We don’t want to panic. We want to see the market, how the market behaves, because the decline of the price does not reflect a fundamental change.”
…click on the above link to read the rest of the article…
