A record production cut by the Organization of Petroleum Exporting Countries is doing little to stabilize oil prices that have fallen more than 100 dollars a barrel since July.
Oil prices hit a four-year low in New York trading today, Wednesday, briefly dropping to less than 40 dollars a barrel after OPEC announced the two-point-two million barrels a day cut from current production levels.
Following a meeting in Algeria, OPEC President Chakib Khelil said the cartel is talking with other oil producing nations about production cuts. He also told reporters "I hope we surprised you," and that if the world was not surprised, "we need to do something about it."New reports show demand for oil in the United States - the world's largest economy - continues to fall.
And the government says U.S. demand for oil will grow little over the next 20 years.The price of crude oil for future delivery closed down more then three dollars, about eight percent at 40 dollars, 15 cents a barrel in New York.