Opec Meeting Results

I had heard analysts speculating that Opec's call for an emergency meeting could possibly result in a cut in supply (1 million barrel per day cut) as a last ditch effort to raise the price of oil to a "fair" price. Most of the oil minister's say that a fair price is somewhere between the $70-$80 per barrel range. Some said that the cut in production would not come until early next year (2009). It turns out that after the meeting was done, no new cuts were announced yet. I guess that's good for us, and not so good for countries like Venezuela. Apparently, some analysts suggest that Venezuela needs oil at least at $90 per barrel to finance its activities and meet its debt obligations. Equally interesting, independent researchers suggest that opec would have to cut production by 3 times per day to raise the price of oil to $65 per barrel and for the smaller countires that may not be feasible because that would cut a tremendous chunk of revenue from their budget. So, I guess we can enjoy the lower prices for now, but keep in mind that next year, the price of oil will rise again; to what levels, who knows.