Skip to content

We ask you, humbly: don't scroll away.

Hi readers, it seems you use Catholic Online a lot; that's great! It's a little awkward to ask, but we need your help. If you have already donated, we sincerely thank you. We're not salespeople, but we depend on donations averaging $14.76 and fewer than 1% of readers give. If you donate just $5.00, the price of your coffee, Catholic Online School could keep thriving. Thank you.

Help Now >

OPEC's bust is America's boom! Why cheap oil is a friend to America

Free World Class Education
FREE Catholic Classes
OPEC refused to cut production until oil is under $40 a barrel

The price of a barrel of oil continues to plunge, bringing with it an economic boon to motorists and headaches and potential layoffs to oil producers in the U.S. and around the world.

Highlights

LOS ANGELES, CA (Catholic Online) - Currently the price of a barrel of oil is hovering around $60, but the Organization of Petroleum Exporting Countries (OPEC) has decided that even if the price of a barrel of oil keeps falling, it will not cut output until at least three months after the price dips below $40 a barrel.

Help provide kids with the quality learning tools they need.

OPEC made the decision in November 27, and has decided to stick with that commitment. The group's collective oil production target remains at 30 million barrels a day, the energy minister for the United Arab Emirates, Suhail Al-Mazrouei said.

"We are not going to change our minds because the prices went to $60 or to $40," he said. "We're not targeting a price; the market will stabilize itself."

Mazrouei does not believe that current conditions require OPEC to meet again before its scheduled July meeting.

"We need to wait for at least a quarter," he said.

While the price drops don't directly hurt the United States, other countries-namely Venezuela and Russia-whose budgets rely primarily on oil exports, are feeling the pain with the price drops.

The 12 nations in OPEC pumped 30.56 million barrels of oil per-day back in November, the sixth month in a row here they exceeded their target numbers, but the group is finding it hard to make money while competing with cheaper and more abundant oil produced in the U.S.

Saudi Arabia, Iraq and Kuwait all made large discounts to the prices of their oil sold to Asian importers. Speculation is rampant that OPEC, which supplies about 40% of the world's oil, is fighting to hold on to their market share as the U.S. taps into cheaper shale oil reserves. Alone, the U.S. produces more than 11 million barrels of oil per-day, the largest single oil-producer in the world, followed by Saudi Arabia and Russia.

---


'Help Give every Student and Teacher FREE resources for a world-class Moral Catholic Education'


Copyright 2021 - Distributed by Catholic Online

Join the Movement
When you sign up below, you don't just join an email list - you're joining an entire movement for Free world class Catholic education.

Lent logo
Saint of the Day logo

We ask you, humbly: don't scroll away.

Hi readers, it seems you use Catholic Online a lot; that's great! It's a little awkward to ask, but we need your help. If you have already donated, we sincerely thank you. We're not salespeople, but we depend on donations averaging $14.76 and fewer than 1% of readers give. If you donate just $5.00, the price of your coffee, Catholic Online School could keep thriving. Thank you.

Help Now >

Catholic Online Logo

Copyright 2024 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2024 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.

Catholic Online is a Project of Your Catholic Voice Foundation, a Not-for-Profit Corporation. Your Catholic Voice Foundation has been granted a recognition of tax exemption under Section 501(c)(3) of the Internal Revenue Code. Federal Tax Identification Number: 81-0596847. Your gift is tax-deductible as allowed by law.