World energy prices decline
Crude prices fell below $70 dollars a barrel for the first time in 14 months -- a 15% decline in value from just three months ago.
OPEC members decided to hold an emergency meeting next week in Vienna to figure out how to keep prices from continuing to decline.
Jad Mouawad, "New York Times" reporter who covers the energy industry tells "The Takeaway" about the implications.
According to Mouawad, the only thing OPEC can really do to stop the decline is to reduce production, in the hopes that they can take enough barrels out of the market to slow down the declining prices. They're facing less demand, so it will be difficult for OPEC to take out enough barrels from the market to make up for the decline in consumption.
In the U.S. gasoline consumption dropped 10%; in August consumption in Japan fell by 12%; France and other European countries saw similar declines. However, in China and the Middle East, consumption is still growing. The question is whether there will be a net growth in global oil consumption, or a decline?
Analysts are forecasting a decline, or at the most, a very weak demand growth.
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