The price of oil is at a record low, with a barrel less than half of what it cost a year ago. Why is the price dropping and what might be the consequences?
Energy firms take a hit after OPEC members agree to less than expected curbs on future oil production. Traders were looking for deeper and more long-term cuts to help stabilize the oil market.
In an attempt to keep the price of oil above $50 a barrel, OPEC has extended the production cut for another nine months. The decision came at a meeting between officials of oil exporting countries in Vienna.
OPEC ministers will assemble in Vienna this week to discuss an extension to oil production cuts to stabilize the price. Saudi Arabia and Russia have already signaled their commitment, but some doubt its effectiveness.
Oil prices have rocketed after a group of non-OPEC countries agreed to huge cuts in crude oil production. The move also saw the stocks of major energy firms rising sharply during trading on stock exchanges in Asia.
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