Oil prices hit a four-year low

Falling oil price creates tension in OPEC

The global market experienced a four-year lowest price of Brent crude oil, which fell below $80. This continuous down move of oil prices has rattled the Organization of the Petroleum Exporting Countries (OPEC) and there is a raising voice for a solid action plan to control this situation. This matter will hit the topic in the crucial meeting of OPEC scheduled next month.

Kuwait and Iran has been serious regarding this concern about record low of oil prices and making the voice louder to draft the action plans of OPEC. This action plan is supposed to recover the falling prices and protect its member countries from this disastrous situation.  International Energy Agency has warned that this situation will continue to remain until first half of next year.

An “extraordinary” joint meeting was held between Kuwait’s cabinet and the country’s Supreme Petroleum Council held where the issue of price fell heated the table and necessary steps to curb this situation was discussed.

According to the news agency of Kuwait, the meeting concluded with the discussion on the steps that are required to be taken promptly at every level to prevent the disastrous situation to evolve out in near future. The meeting also discussed about consulting with other OPEC members about the situation and take every possible steps to take over this situation while maintaining the interest of all member countries.

This high-level joint meeting came out as a surprise package considering the previous confidence statement of Kuwaiti government. The statement had stated why the price rebound is most likely pacifying the situation. The Vienna meeting of November 27 was also concluded with positive hopes.

On Sunday, Iran’s minister for oil criticised the member countries who urged to maintain the same production level. This production level was set when Iran was under economic blockade from USA. After this blockade was relaxed, the oil produced in Iran got market in the international market, which caused the oversupply of oil. This excess supply is also believed to be the cause of decreasing oil price in the global market. Iran has already started using its sovereign wealth fund to alleviate the reducing oil prices.

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