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OPEC and other oil-producing countries can’t cut production deep sufficiency to stay ahead of plummeting demand as millions of people lose their jobs and stop driving, factories lock up down and the world settles in as being the worst economic slowdown in a progeny.

In other words: Even if OPEC talks about cutting the supply of oil, those cuts are nothing compared to the way the slumping economy is pushing necessitate downward. So prices keep sliding.

Is there anything more to it? Here are some questions and answers ready OPEC’session influence over oil prices.

Q. Doesn’t OPEC pretty a great deal of dominate oil production

A. The 13-nation Organization of Petroleum Exporting Countries (OPEC) controls from one place to another 40 percent of world crude supplies

“There’s historical precedent that OPEC doesn’t have a chance of power inside an environment of declining interrogation,” said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.

“They can certainly go out and flex their muscles when global oil demand is strong. But when it’s weak, they simply dress in’t require a lot of power

Q. What exactly did OPEC decide to do Wednesday?

A. As expected, OPEC powerhouse Saudi Arabia said the group will slit a testimony 2.2 million barrels from its diurnal production as of Jan. 1, while Russia and other OPEC outsiders announced their own cutbacks of hundreds of thousands of barrels.

Combined with previous cuts announced in the past hardly any months, OPEC is taking 4.2 million barrels a day off the market compared with September levels.

Q. How did the market react to this propose?

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