OPEC has decided to cut down its output by millions of barrels per day. Presently the decision is under consideration. Such steps are taken to maintain difference between what the world consumes and what it is able to produce. Main aim of OPEC is to maintain the cost of oil minimum to $60 a barrel. According to annalists, OPEC may only cut its production if the price decrease unto $50 per barrel, especially upto autumn, because it is the season in which there is minimum demand as compared to rest of year.
By cutting the production, O.P.E.C. may get good price for oil, but in future such situation will give rise to find alternative sources of energy fuel like ethanol and fuel cells. If alternative sources of fuel energy are soughted out it will not only decrease the price of oil it will also hazard the economy of oil producing countries.
Timely if the alternative sources of fuel are sought out it will not only improve the condition of world, but it will also help in ending up the monopoly of members like O.P.E.C. In such situations underdeveloped economies will gain most which is today’s need
Via: money
