OPEC chasing gas prices
We've heard a lot about the ever-rising price of oil. Now that it's dropping, there seems to be no stopping it. But consumers shouldn't rest easy just yet, Nancy Marshall Genzer reports.
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SCOTT JAGOW: The cartel of oil-producing countries is having a Rodney Dangerfield moment. This week, OPEC said it would cut production by a million barrels to prop up the price of oil. And what happened? Oil prices dropped to their lowest level in almost a year. This morning, they're at $58 a barrel. Nancy Marshall Genzer tells us how OPEC might get its respect back.
NANCY MARSHALL GENZER: It's been two years, since the cartel last trimmed output to drive up prices.
But Robert Bryce of Energy Tribune Newsletter says, if the price of a barrel of oil goes too low, OPEC will probably try to get serious about cuts.
ROBERT BRYCE: "If prices continue to fall toward $50 I would expect them to have another meeting and say look we've really gotta act like a cartel."A lot depends on Saudi Arabia, and it's holding its cards close to its vest.
Barbara Shook of Energy Intelligence Group, is paying close attention to what she calls the geopolitical premium of Iran's nuclear brinksmanship.
BARBARA SHOOK: That's a geopolitical premium and I've seen different estimates of that of anywhere from $20 to $30 per barrel."Shook and other analysts are sure of one thing: Oil prices will continue to be volatile through the winter.
I'm Nancy Marshall Genzer for Marketplace.
