Getting used to cheap gas prices
? Experts have been warning that they are not going to last and the Organization of Petroleum Exporting Countries (OPEC) is doing its part to prop 'em back up. Today, OPEC unleashed a plan to drastically cut oil production by an astounding 2.2 million barrels per day - the largest cut ever - after already dropping oil production by another 2 million barrels per day just a short time ago. This move once again proves that oil is a supply and demand market and is in response to "the repercussions of the financial crisis," said OPEC President Chakib Khelil. Oil prices had hit record highs last June but have since dropped by an amazing 70 percent.
Regardless of OPEC's desire to stabilize the falling price for a barrel of oil, the market responded by dropping its value another few dollars shortly after the announcement. OPEC nations produce roughly 40 percent of the world's oil supply. We're not expecting this dramatic roller coaster ride to end anytime soon. Better buckle up.
[Source: CNN Money